Cost of employers insurance drops

Two out of three manufacturers report that their Employers Liability Insurance (ELI) premium has either dropped or remained the same this year.

The survey by employers’ organisation the EEF showed a marked improvement in insurance trends for employers, as last year 91% of companies reported an increase in their premiums.

However, this was not enough for British manufacturers, who cited some disturbing trends, including:



  • wild swings in the level of premiums, with a maximum reported increase and decrease of 273% and 73% respectively.
  • while large firms are tending to benefit from reductions in premiums, small and medium size firms are bearing the brunt of the increases
  • Despite a commitment from the insurance sector that premiums should reflect risk exposure and assessment, 73% of companies with an externally verified safety management system believed this did not result in a more favourable premium.

The EEF said fundamental weaknesses remained in the current system which resulted in added cost by focusing on compensation, rather than rehabilitation.

EEF director of health, safety & environment, Gary Booton, called for root and branch reform of the current arrangements.

“A system which has financial compensation rather than rehabilitation and return to work as its focus is not one serving the best interests of society,” he said.

The group added that there appeared to have been little if any progress on government initiatives aimed at encouraging rehabilitation or reducing the cost of settling claims.

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