According to fresh research from AXA UK, the majority of small to medium sized businesses in the United Kingdom are worried about false Employer’s Liability claims, with a staggering 24% of those surveyed reporting that over the last 5 years a former or current employee has made a liability insurance claim against them.

84% of employers think that the UK has too much of a compensation culture in regards to workplace injury claims. The majority of SMEs also back policy reforms to dissuade fraudulent workplace claims, including tougher medical examinations, a ban on no-win-no-fee services and referral fees for CMCs (claims management companies). 64% said that CMCs were mostly or wholly responsible for the current culture of compensation. 

David Williams, Managing Director at AXA, said: “There is no doubt and no question that those who are genuinely injured in the workplace should receive fair compensation. However, at a time when the number of workplace accidents is falling and the number of claims continues to rise, there is clearly something of an imbalance in the system.

“It is clear from this research that workplace injuries remain a major issue for SMEs – the lifeblood of the British economy. The cost of fraudulent workplace claims is bringing about the inevitable consequence of higher Employer’s Liability premiums. Small business owners have serious concerns and would like to see the Government go even further with its reforms.”

SP Group, a resourceful, independent provider of maintenance products, also weighed into the debate, sympathising with small – medium sized businesses and backing calls for proactive measures to stamp out falsified claims.

A spokeswoman for SP Group said:

“The findings are entirely unsurprising. Businesses across the United Kingdom and Ireland are fed up with this growing compensation culture and we can’t blame them. The number of people making fake injury claims against their employers is really hurting the economy and has crippled many small businesses. We fully support legitimate claims but it’s clear that in a lot of cases the claims are anything but.”

But the company was eager to stress that while there are plenty of fraudulent claims about, businesses can take the necessary steps to protect themselves.

“One of the best ways to protect yourself from having claims put against your insurance is to invest in maintenance products. The safer you can make your work place look, the better. And it doesn’t hurt to have the likes of anti-slip paint, stair treads, etc, in place as it reflects well on you as an employer.”

SP Group is a purveyor of professional maintenance items in the UK and Ireland. Their products will help you to make your workplace safer and more professional. Visit www.s-pgroup.ie for more info.

For quotes, contact Adam Lumb on 028 9442 8611 or email enquiries@s-pgroup.ie.