Bosses told to cough up for health & safety insurance

According to the organisation, injury and illness in the workplace costs the UK economy around £18 billion a year but the average British boss pays just £70 per employee to cover the annual cost of compensating staff hurt at work.

The TUC is to submit a report – entitled ‘Radical solutions we can all afford’ – as part of a government review on employers’ liability insurance, in which it calls for bosses to shoulder more of the costs.

As reported on Startups.co.uk, many small firms are already finding it increasingly difficult to afford cover due to skyrocketing premiums, and the TUC’s comments are likely to anger business groups who have called for a major overhaul of the system.

However, at a joint meeting of MP’s to be attended by the Confederation of British Industry and the Association of British Insurers the TUC will argue that employers’ liability insurance costs less than one tenth of the average cost of insuring a car.

In addition, the TUC will claim British employers pay less than a sixth of what their major competitors pay for the costs of injury compensation – 0.25 per cent of payroll compared with 1.5 to 2 per cent in most developed countries.

And it will also say most of the £18 billion cost of workplace injury and illness was paid for by the government and victims, with employers only contributing between £3.3 billion and £6.5 billion.

Owen Tudor will tell the meeting that a system is needed where the perpetrator pays, so that they have an incentive to prevent injuries and ill health.

“We need to complete the creation of the welfare state with a national rehabilitation service and fair compensation for injury victims.

“For all that, employers need to pay more, but they need to get more too – insurers should help them protect their workers and get them back to work fast if the worst happens,” he is expected to say.

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