Employers' liability insurance 'is essential'

Employer liability insurance is "essential" for small business owners, according to the Institute of Risk Management (IRM).

Carolyn Williams, IRM development manager, says that small business owners operating without employer liability insurance are taking a "dangerous approach" to management.

Her comments come after it emerged that a majority of small business owners do not have employer liability cover.

"Even if they are a one man band, they need to consider [employer liability insurance] if they are using volunteers or contractors who could conceivably be in an employed situation even though they might not think they are," she adds.

According to research by Hiscox 62 per cent of small business owners do not cover themselves against employee legal action, despite the number of UK employment tribunals increasing by 15 per cent in the last year.

The IRM is the leading body concerned with risk management training and education in the UK.