The FSB has recently been contacted by businesses with successful export histories that are finding themselves uninsurable as insurers pull out of providing cover abroad.
John Emmins, FSB national chairman, said: “In a recent survey of 18,000 FSB members, nearly a quarter of all training that took place in small firms was related to exporting. This suggests a huge appetite among small businesses to enter the export market or to expand their export operations. The current crisis in insurance is stifling this dynamic sector.
“The FSB is advising businesses without EL to cease trading immediately but anecdotal evidence suggests that some business owners cannot face telling staff that, despite vigorous order books and hard won contracts they have to close a well established business.
“Whilst we recognize the role that continuing health and safety education can play, it can only achieve so much because a poor health and safety regime is not the reason for escalating premiums in the vast majority of cases. Many small firms are desperate to get insurance cover but cannot find a product on the market that meets their needs.”