ABI publishes guide for SMEs on Employer's Liability Insurance

The aim of the guide is to provide clarity to businesses on what they do and don't need to do when obtaining EL cover.

The guide explains the difference between employers' liability and public liability insurance, the Health and Safety at Work Act 1974 and includes a simple to follow table addressing some common concerns around adherence to health and safety guidelines.

Otto Thoresen, ABI Director General, said:

"Over-zealous interpretation of regulations risks bring the entire health and safety system into disrepute. Insurers are determined to help business understand health and safety rules and what insurers require.

"Our guidance to small and medium enterprises today is part of our on-going commitment to help firms understand what is, and what is not, required of them.

"Insurers will begin to provide the guidance to business customers over the coming months and we look forward to business groups working with us to help dispel the myths and communicate the reality."

The ABI guide was produced after consultation with organisations that represent SMEs including Federation of Small Business and British Chamber of Commerce in conjunction with the Health and Safety Executive and the Department for Work and Pensions.

Minister for Employment Mark Hoban said:

"Too often in the past, businesses have been confused about what they are required to do in order to meet health and safety requirements. That confusion wastes time and money, and creates an unnecessary burden which could act as a barrier to growth and success.

"This government is committed to debunking health and safety myths and slashing burdensome rules: making requirements clear and easy to understand.

"These efforts have been bolstered by the guide published today by the Association of British Insurers, which will give employers peace of mind by reassuring them - for example - that they don't have to take out special insurance policies to cover students on work experience."