Nearly half of UK small businesses are concerned about the availability and rising cost of insurance cover, according to new research.
A survey carried out by Norwich Union found that 45 per cent of bosses felt that the price and availability of cover was a major issue in the future of their businesses, with 40 per cent expecting premiums to go up every year.
Despite the worries over soaring costs, 66 per cent said that they did not want to lose out on certain benefits to secure a cheaper deal, with only 15 per cent buying the cheapest insurance they could find.
Three-quarters of firms said that insurance was an essential part of a successful business, with only 15 per cent admitting that if cover wasn’t a legal requirement, they wouldn’t bother getting it.
Government regulations were another big concern for entrepreneurs, with 72 per cent of firms feeling that legislation created more problems than it solved.
A further 40 per cent said they fretted about poor cash flow, while 22 per cent admitted to being worried about the threat of legal action bought by an employee.
However, despite the wide range of concerns expressed by small businesses, an encouraging 85 per cent of bosses were confident of a bright future for their firms, buoyed by the improving economy.
Debbie Heaney, of Norwich Union, said that keeping up with the raft of new legislation can be extremely onerous for a small firm.
“For insurers and particularly brokers, this can provide a key opportunity to position themselves as risk advisers as well as salespeople.
“By providing the latest updates on legal and health and safety issues, we can really add value as an industry,” she said.
