One in five employers have had to cut staff due to the on-going liability crisis, according to a new report by the FSB.
The survey of over 1,000 small business owners launched reveals that 20% of employers have laid off employees or put a freeze on recruitment as a result of escalating premiums.
One in five firms report that they are facing the doubling of premium costs on top of last year's dramatic increases.
More than half of all businesses have seen a dent in their profits and 15% have been forced to reduce the training that they make available to staff as a result.
The report also indicates that a quarter of employers have found it difficult or impossible to find employers' liability insurance at any price, despite it being a legal requirement in the UK. And 8% of those surveyed are trading without it, according to the FSB.
FSB national chairman John Emmins said: "Small firms are facing another round of huge premium increases that will force some out of business. The ongoing crisis is having an adverse impact on employment prospects and firms are reducing investment in crucial areas such as staff training."
