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The 5% of businesses found to be ignorant of insurance laws are the ones most likely to see employees hurt in a workplace accident, according to training company Pivotal Performance.
A survey by insurance firm Axa found one in 20 businesses don't have the liability insurance required by law, and Pivotal's Paul Darby claimed those firms are the ones likely to ignore other laws related to staff care.
"There is a lot of health and safety legislation for a reason - because it stops employees being hurt or killed," said Darby. "But if the directors of some businesses don't do basic research into their legal insurance requirements when employing people, they are also unlikely to know what health and safety laws apply to their business."
There is a £2500 per day maximum fine for failing to provide appropriate insurance cover, with a further £1000 penalty for not displaying an insurer liability certificate.
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