Litigation threat highlighted by CBI

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Litigation threat highlighted by CBI

LONDON, UK - UK businesses will have to cope with the worst of the US litigation culture unless the government sets up a working fund for industrial accidents, the director-general of the CBI has warned.

Digby Jones believes a working fund would stem the growing crisis in employers' liability insurance.

"We need to change the emphasis to get people back to work, rather than focusing on the cost of the industry," he told The Times.

"This is a shift which can happen tomorrow. Let's get the money spent and then decide who foots the bill."

Speaking ahead of a seminar organised by Marsh, the insurance broker, Mr Jones insisted "the government could help by priming the whole mechanism".

The CBI views surging costs for compulsory insurance cover as one of the biggest threats to UK productivity - SMEs' premiums have rocketed by 1,000 per cent over the past three years.

Mr Jones said: “We do not want India to eat our lunch and China to eat our dinner. If we don't deal with this we shall be caught by the EU way of dealing with the issue and the US way. We'll end up with the worst of the EU regulations and the US litigation.”

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