Insurers not giving enough notice

Despite government proposals last month (CJ 11 June) that insurers should provide a minimum renewal period of 21 days for employers liability insurance (ELI), insurers are still providing little or no notice.

Liverpool-based Church Street Demolition claims it has effectively been pushed to the brink of collapse because its ELI rose from 21,000 to 45,000.

"I got the renewal quote through from my broker Miles Smith just days before it was due, giving me no time to shop around," said owner Kevin McNulty.

"Miles Smith appears to be the only broker that will provide quotes for companies in our sector now," he added.

With a turnover of 400,000, Church Street cannot absorb such a hike, and McNulty has had to lay off five members of his 10-strong workforce.

"Our accountant has advised us to pay the premium in instalments, but it is still going to be a struggle," said McNulty.

"We can appreciate insurers putting up premiums of bad companies - in fact we welcome this - but we have done nothing wrong. We have a clean slate. We employ a safety advisor and all our operatives have attended the asbestos refresher course and the Construction Industry Training Board safety awareness course," said McNulty.

A spokesman for London-based Miles Smith said its renewal notice periods vary depending on when it receives the terms from insurance companies, but generally it is "three to four weeks".