SMEs Feeling The Pain Of Rising Business Costs

Despite the economic recovery being in full swing, small business are reporting rising costs. We take a look at the results from a survey conducted by The Forum of Private Business, which shows that insurance premiums are ranked as the second most costly expense by many businesses.

  • 86% of SMEs have seen a rise in costs over the last 12 months.
  • 84% of businesses are not passing this rise on as they think it may price them out of the market.
  • 27% of those questioned believed that a reduction in red tape would have the biggest cost-saving effect.

The most costly areas for SMEs according to the survey:

Staff: 77%

Insurance 60%

Marketing: 60%

Support: 54%

Energy: 50%

One way of reducing the costs, and time-intensive paperwork is to get insurance through a broker, not directly from an insurer. A broker can secure cheaper deals and offer valuable support, especially when it comes to niche insurance products for SMEs. Brokers are also able to access specialist products that are not available directly to SMEs. These broker-only markets are often the cheapest way to cover specialist insurance needs, and provide cover for the most difficult risks.

 

Want to know more about specialist Insurance? Please call 01245 500433, to get a competitive online quote today!

 

Source:

FPB.Org