The Department of Healths proposals to recover costs for the NHS in personal injury cases will add significantly to the costs of employers liability insurance, warns the ABI.
The ABI estimates the proposals will increase employers liability insurance premiums by around 7 per cent.
ABI head of general insurance John Parker says: “While we recognise that the NHS needs proper funding, this is not a good time to be adding further to the cost of insurance. Employers liability insurance is already under considerable strain.
“The insurance industry is working hard to raise standards of health and safety and to keep the cost of insurance affordable. This further change will add a considerable burden for policyholders.”