SMALL businesses could face crippling rises in employer liability insurance premiums due to new regulations.

That's the warning from Bibby Financial Services, experts in business cash flow.

Changes to the Health and Social Care Act, which came in to effect last

month, now give the NHS the power to recoup treatment costs from firms that have been proved negligent in the case of employee accidents in the workplace.

Spokesman Robin Goddard said: "The necessity for businesses to have adequate cover is more important than ever."