Companies at risk from insurance costs

Companies at risk from insurance costs

Hundreds of companies are facing insolvency as risk-wary insurance companies are hiking up fees and even refusing to insure certain sectors.

Link: SMEs face massive insurance hike

According to Begbies Traynor partner Nick Hood, the inability to get insurance is bound to lead to a rise in insolvencies. He said: ‘Companies will have to stop trading because they cannot get insurance.’

Jamie Smith, business recovery partner at Deloitte & Touche added the substantial increase in insurance was due to problems insurance companiesthemselves were having because of the difficulties in the economy.

The British Insurance Brokers Association, warned that business sectors where staff are at a high risk of exposure, could close down because they are unable to get employees liability cover.

The BIBA also said companies in sectors such as construction, courierand mining are either going out of business or operating illegally withoutinsurance because of the problem.

Experts believe that in the current economic climate, the rise in premiumsalone would be enough to drive weaker companies out of business.

Jeremy Willmont of Moore Stephens said: ‘If the cost is substantial, it could be the final nail in the coffin for companies that are struggling.’

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource