Employers’ liability scams on the increase firms warned

BUSINESSES in Yorkshire need to be wary of a rise in employers’ liability scams in the region, according to insurance broker Jardine Lloyd Thompson.

The Leeds office of the firm is warning that criminal gangs have moved to employment fraud after a clampdown on motor fraud.

According to Charles Wenborn, regional managing director for the Leeds branch, Yorkshire has been hit particularly hard by criminal car insurance claims with Bradford the number one city for ‘cash for crash’ in the UK.

Car insurance rackets have dropped since the Insurance Fraud Bureau (IFB) and local police forces cracked down on them, but fraudsters have already begun to stage accidents in workplaces to pocket settlements.

Leeds, Huddersfield and Halifax are proving hotspots with fraudsters moving onto public liability and professional indemnity scams.

Mr Wenborn said: “There is now sufficient anecdotal evidence to suggest that these gangs have started taking on part-time or contracted work in order to fake an accident and make claims.

“The criminals focus on inherently dangerous places like building sites – but all businesses that use temporary labour must be careful in the future.

“Firms need to be aware of this type of fraud and take whatever steps they can do defend themselves.”

Mr Wenborn added that businesses needed to have confidence in their Health and Safety systems, be vigilant when taking on new staff and contractors and keep in regular contact with their brokers on any contentious issues.