Massive increase in print insurance

Print insurance premiums have risen by over a quarter due to the growing compensation culture, a weak stock market and massive losses in the insurance industry.

BPIF commercial products manager Steve Walker said: "Never has the insurance industry been in such turmoil. Most companies have seen a 25% to 30% increase. But we know of two companies that have had increases of 500%."

The BPIF, which runs an insurance scheme in conjunction with Aon Risk Services, has warned that companies not prepared for increases may struggle to make the premiums. It has also produced a checklist to enable companies to keep rises to a minimum.

Mandy Pratt, senior underwriter at Ace Insurance, print's largest underwriter, said the industry was still an attractive proposition.

"A lot of work has been done over the last 15 years to reduce risk and that has helped," she said. "Premiums have gone up, but not any worse than other areas."

The Federation of Small Business (FSB) said some small businesses were unable to afford cover and had to close or operate illegally.

FSB deputy head of parliamentary affairs David Bishop said some businesses experienced increases from £1,200 last year to £8,000 this year for £1m of cover.

"The charges are crippling. We're asking insurers to look at businesses on a case-by-case basis," said Bishop.

The FSB is currently lobbying government to make changes to compulsory employers' liability insurance.

Story by John Davies