LONDON—The Assn. of Insurance & Risk Managers has called upon the U.K. government to become stricter toward companies that do not buy, or buy insufficient limits of, employers liability coverage.

Employers liability insurance is compulsory in the United Kingdom.

In its response to a government review of health and safety legislation and the “compensation culture,” London-based AIRMIC said current enforcement of the Employers Liability (Compulsory Insurance) Act is “woefully inadequate.”

The U.K. government in June commissioned Lord Young of Graffham, a former cabinet minister, to conduct a review into the health and safety and compensation system in the United Kingdom. His report is expected in the coming months.

“Apart from the obvious moral and legal imperative to protect staff, it is unfair that our members are placed at a competitive disadvantage because they observe the letter of the law,” said Paul Hopkin, technical director of AIRMIC, in a statement. “Firms that are taking shortcuts on employee safety are getting away with it because of inadequate enforcement,” he added.

AIRMIC also noted that it believes certain “over-prescriptive” workplace safety rules should be relaxed.

The U.K. risk management association also called for an overhaul of the personal injury claims process. AIRMIC said the cost of personal injury claims procedures has spiraled in recent years and called for a simplification of the process.