Perceived high risk industries, such as construction, are most worried about premium rises, but across small businesses generally cash flow is a problem, according to research by Zurich UK
More than 85% of small businesses in the construction sector are concerned about the impact of rising insurance premiums on their businesses, according to research from Zurich's UK commercial business.
Last week, both the Office of Fair Trading (OFT) and the Department of Work and Pensions (DWP) published their much anticipated reports into liability insurance. The National Federation of Builders welcomed the reports, but said more immediate action was necessary to help alleviate the problem of escalating premiums.
Carl Gebhard, construction manager for Zurich's UK commercial business, said: "The most important thing that the construction industry can do to control premiums is to invest in, and manage, health and safety within the business.
"With many potential hazards, good risk management is an essential tool for all companies.
"The insurance industry is becoming more sophisticated in terms of risk selection and companies need to demonstrate what measures and controls have been implemented to minimise the potential for accidents."
Results from the insurer's SME Index, which monitors confidence levels among small and medium sized enterprises on a quarterly basis, also revealed that other industries which expressed concern over rising insurance premiums were mining (79%), transport (78%) and retail 70%).
Zurich is urging brokers to support businesses within the construction industry and has the following top tips for brokers with clients in the sector:
