The social economic and political issues surrounding employers' liability insurance in the UK

It has long been recognised in both the UK and in other countries that society has an obligation to compensate workers who are injured or who suffer ill health through the course of their employment. The most common means of society ensuring this is by government legislation requiring employers to fund a variety of insurance schemes. This article explores the situation which has recently prevailed in the UK. The system of insurance which has historically dealt with the question of an employer’s liability to pay compensation has been in a state of turmoil, and a diverse range of stakeholders have called upon the government to act. The article analyses the various suggestions made, considers the merits of other national systems and evaluates the government’s response. It concludes with the view that government inaction is likely to present them with an even greater crisis.