Small businesses are being given little time to renew their EL cover despite Biba and ABI guidelines that insurers should provide policyholders with a least three weeks' notice, said the Federation of Small Businesses (FSB).
Research from the FSB revealed that in more than half of all cases the industry standards were not being met. The guidelines were introduced in November 2003.
An online poll of more than 1,000 firms revealed that more than one in ten small businesses had been given less than one weeks' notice to renew their compulsory EL cover. Over half of respondents said they were given two weeks' notice.
The insurance industry's failure to achieve its standards of good practice means small businesses are given hardly any time to hunt for an affordable quote – a task that one in four businesses surveyed claim is difficult or even impossible, said the FSB.
FSB policy chairman John Walker said: “While businesses may have weathered the 100% premium increases common over the last few years, there is still a significant number of employers who find employers' liability insurance difficult or impossible to secure.
“For these firms in particular it is vital that they get as much notice as possible to allow them to hunt around for affordable cover.
“We are calling on the ABI to enforce the industry's commitment to giving businesses 21 days notice that their policy is up for renewal - even where it is sold as part of an insurance package.
“I have written to Minister for Work Jane Kennedy to ask for her support.”
