The Federation of Small Business (FSB) has urged the Treasury to control rising employers' liability premiums.
The move follows this morning's stark warning from AXA that over 200,000 businesses are operating illegally without employers' liability (EL) insurance.
David Bishop, deputy head parliamentary affairs at the FSB explained: "We have been warning the government since August that many small businesses are being forced to trade illegally often due to rising premiums.
"The Axa report suggests that this warning is becoming a reality. The government must work with insurers and small businesses to avert a growing crisis."