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Charlie Duff

Sift Media

Editor, HRzone.co.uk

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Risk for employees as businesses cut insurance

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Desperation to cut costs has led to some organisations skimping on insurance, leaving employees and businesses at risk, claims new research from AXA and British chambers of Commerce (BCC).

 

Only a third of businesses understand their legal requirement to cover employees with employer’s liability insurance, leaving over half a million employees uninsured, according to research from AXA and British chambers of Commerce (BCC). More worrying still is the indication that many businesses have sought to cut costs by cutting back on insurance cover.

With a reported 13% of businesses having less than £1,000 disposable cash and nearly half with less than £10,000, many poorly-insured businesses are likely to be extremely vulnerable in event of a claim.

Doug Barnett, head of customer risk management at AXA said: “These statistics should be a wake up call to all businesses and the insurance industry alike. With the economy as precariously positioned as it is at the moment, the last thing needed is more businesses needlessly going to the wall because they are not properly insured.

According to the research, there is a huge amount of misunderstanding when it comes to insurance, not helped by reports that less than half of employers have read their insurance documentation.

Most employees (89%) of employees knew about insurance covering them for accidents at work, although over a third (36%) had never been given any information about their employer’s insurance programme. AXA recommends employers continue to prominently display their Employers’ Liability Certificate as well as making this available electronically.

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Charlie Duff

Editor, HRzone.co.uk

Read more from Charlie Duff