Business insurance premiums would soar under new government proposals to make firms’ pay compensation to staff who are victims of crime, a business pressure group has warned.
Responding to a Home Office consultation document on plans to change the Criminal Injuries Compensation System (CICS), the Federation of Small Businesses (FSB) claims that companies’ insurance premiums are already high enough and the proposal will only exacerbate their cost.
Premiums have risen substantially in recent years, the FSB said, often over 100% in one year, and small firms have borne the brunt of this cost burden.
Some 58% of small firms have been the victims of crime in the past year and a quarter state that Employers’ Liability Compulsory Insurance is already difficult to obtain even without these proposed changes, according to the FSB.
“Businesses should not be penalised by the actions of criminals,” said David Croucher, FSB national crime spokesperson.
“It would be a terrible double blow for a small firm to be a victim of crime and then have to pay extra for that dubious privilege.
“Our members know that their employees are the most vital resource in their business. They do everything they can to protect their workers and the firm from crime. After that we have to rely on the police, the judicial system and the Government to do their job.”
Currently the CICS pays out compensation to workers injured during the commission of a crime.
Consultation on the proposals ended yesterday.
