SMEs face massive insurance hike
Small business face a substantial increase in their general insurance premiums as well as their policy excess, as the sector continues to suffer from September 11 fallout and higher insolvency figures.
SMEs could pay as much as three times the cost of last year’s premiums, according to turnaround specialists Begbies Traynor.
Data from the DTI showed a quarterly increase of 7.6% in company insolvencies, with a 9.9% increase on the year – in total there were 4,118 company insolvencies in England and Wales in the second quarter of the year.
Nick Hood, senior London partner at Begbies said many SMEs would not be able to afford adequate cover: ‘For any small business already under pressure, this spells very bad news.’
Begbies recommended that SMEs that need to renew their insurance policies, get in touch with their insurance brokers as soon as possible to start renewal negotiations.