EMPLOYERS’ LIABILITY INSURANCE HAS LOW PENETRATION IN UK SME’S

Source: Insurance Times - November 2021.

"The penetration rate for EL cover has gradually fallen over the last four years, signposting the need for greater education around this type of insurance, says data and analytics business.

The penetration rate of employers’ liability (EL) insurance at UK SMEs has fallen to 62.5% for 2021, marking the lowest recorded EL penetration rate for this demographic in four years, according to annual research by data and analytics firm GlobalData.

The firm’s 2021 UK SME Insurance Survey, which polled 2,001 respondents and was published in Q3 2021, found that of the respondents that did not have EL insurance, 23.6% believe the risk to staff is minimal, negating the need for EL cover, while 15.2% were not aware that EL insurance is a legal requirement.

GlobalData believes this leaves some UK SMEs “open to the risk of large payouts in the event of an injury to one of their employees and also leaves some SMEs breaking the law.”

Read the full Insurance Times article here.