Business and Planning Bill

Debate between Baroness Kramer and Baroness Pinnock

Committee stage & Committee: 2nd sitting (Hansard) & Committee: 2nd sitting (Hansard): House of Lords
Tuesday 14th July 2020 Lords Chamber

[Baroness Kramer [V]]

My Lords, as employers bring back employees, even observing all the government guidelines scrupulously only reduces the risk of Covid—it does not eliminate it. That brings me to the issue of employers’ liability insurance and Covid, which I raised at Second Reading. I thank the noble Earl, Lord Howe, for his letter to me, in which he addressed the questions that I raised, but it seems that the problem remains. He wrote:

“Every employer carrying out business in Britain must maintain compulsory employers’ liability insurance, which insures them in relation to bodily injury or disease sustained by employees arising out of and in the course of their employment in that business. There are strict limits on the conditions and exclusions which such policies can contain.”


However, both employers and employees were very taken aback to find that business interruption insurance, which they thought covered them in an instance such as the pandemic, in most cases has not been applicable. Many will look at the terms of employers’ liability insurance and feel very uncertain that, in a case where an employee acquires Covid at the work site, they will be protected by that insurance, and of course employers share that same concern. There is a real worry that insurance companies will find some way out of being responsible for paying compensation or that they will ask the employers to add to and expand their insurance, at some extraordinarily exorbitant price.

I was interested in Amendment 77 because I am being realistic in recognising that the Government will not intervene at the moment to try to make sure that this insurance is adequate—and at the moment, insurers are not feeling a lot of pressure. But the coming together of employees and employers, which in a sense is outlined in Amendment 77, seems to provide a venue to create pressure and to place attention on this issue. I fear that, particularly if we have a second spike, it will become a very significant issue, and I do not want the pressure to try to deal with this matter to go away.

[Baroness Pinnock [V]]

My Lords, Amendment 77 on employee and employer considerations, in the name of the noble Lord, Lord Hain, is a timely reminder that all the elements of the Bill have a consequence on working lives and employer responsibilities, and provide opportunities to develop better working practices and relationships. Liberal Democrats have long proposed employee involvement in businesses as a means for improvements to be gained, both by the employer and those employed. This debate is important, we support the sentiments, and I look forward to the response from the Minister.