HSE forms steering group to tackle insurance crisis

The Health and Safety Executive (HSE) is forming a steering group to discuss whether companies with good safety standards should receive a discount on their employers' liability insurance premiums.

Its formation will bring much needed hope for thousands of businesses in the contructiion industry who are struggling with spiralling employers' liability premium rate rises of up to 1,000%.

The move by the HSE came as the Treasury and brokers met in an attempt to solve the growing crisis. Shortage of capacity, increased litigation and growing court payouts for claims have made it difficult to get cover for accidents in the workplace, despite the insurance being required by law.

An HSE spokesman said: "The HSE has always seen insurance premiums as a lever for encouraging good health and standards performance. It has always been our intention to discuss with the insurance industry the possibility of looking at insurance premium levels as a reward on health and safety performance."

He added that the steering committee was still in its early stages, but a meeting involving representatives from the Department of Work and Pensions, the Department of Trade and Industry, the Treasury, and the insurance industry, is expected to be held next month.