Small business insurer PremierLine has urged businesses to budget for premium increases, as major commercial insurers try to cover losses caused by the September terrorist attacks on the US.
PremierLine, which launched in November last year, said it expected the price of small business properties and contents cover to rise by at least 20% to 30%, and liability covers to jump by 100%, in some cases.
PremierLine chief executive Barrie Wells said: "Spiralling insurance premiums will come as a body blow to small businesses already suffering from the economic downturn.
"They should prepare as best as possible for the pending increases, and shop around for the best deals when policies come up for renewal."
In a statement, PremierLine, which claims to be the first `direct' insurer for businesses, said it had saved small businesses an average of 26% of their renewal premium.
