So what does 2011 hold in store for those that regularly take out small business insurance policies to help protect themselves against the difficulties of running a small company?
Most experts – those connected to the small business insurance business and outside of it – think that 2011, the start of the decade in fact, will be a tough time for all companies, not just the smaller operations.
The effects of two whammies will be felt in the early months of the year: the economic downturn and the bad weather.
The economy first and despite the signs of those infamous grass shoots of recovery, the first half of the year is set to be tricky. The true impact of the austerity cuts will start to bite then and unemployment is likely to rise significantly as especially public sector jobs go in high numbers. How much this can be absorbed by a slowly growing private sector which looks to exports to keep the momentum going remains unclear. The weak pound and thirst for goods in the developing economies is what the UK, and indeed the US, are pinning their hopes on. The second half of the year should be better.
Then there’s the weather. With major blue-chip companies like Next saying they lost some £20 million due to the conditions, you can bet a lot of that grief will be passed down to the smaller suppliers. The retail sector especially will be praying for Spring.
So it’s steady as she goes for all those with small business insurance policies. Head down and keep going, until things improve in the summer.
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