INSURANCE RENEWAL NOTICE PERIODS MUST BE MADE COMPULSORY

12.00.00am BST (GMT +0100) Wed 9th Jul 2003

New figures released by the Federation of Small Business today reveal that 63 per cent of members surveyed are getting three weeks or less notice of renewal from their brokers and insurers for Employers' Liability cover.

Brian Cotter MP, Liberal Democrat Spokesman on Small Business, said: "Renewal notice periods must be made compulsory, otherwise how can businesses be expected to secure affordable cover and continue to operate legally."

"In some cases businesses have been informed only 3 days before their cover was due to run out. This puts unnecessary pressure on small business owners."

"The Government's promise to work with the insurance industry to improve notice periods has been empty. This issue should have been tackled last November when the Government first launched its enquiry."

ENDS

Notes to Editors

Brian Cotter has tabled two Early Day Motions (numbers 146 and 1309), which have received cross-party support, calling on the Government to introduce a compulsory notice period where premiums are to be raised or cover is to be withdrawn.