Forum Brief: Insurance premiums

The Treasury has been urged to overhaul laws on employers' liability to help small companies struggling to arrange insurance cover.

The British Insurance Brokers' Association believes that hundreds of small and medium-sized business are either going out of business because they cannot afford high employers' liability premiums, or operating illegally without insurance.

Forum Response: Federation of Small Businesses

John Emmins, national chairman of the FSB, told ePolitix.com: "The Treasury has said that there needs to be clear evidence of the insurance market failing before the government to intervene as it did for the airline industry after September 11.

"We believe that this situation has already been reached because small firms are being forced to trade illegally. The chancellor should demonstrate his commitment to Britain's 3.7 million small firms and act now."

Forum Response: Association of British Insurers

A spokesman for the ABI told ePolitix.com: "We are aware of the issues and we met with the government a month ago to discuss the problem. We are organising a seminar on September 6 to look at ways to press for change."