Increases in insurance premiums continue to be a major cause of concern for small and medium-sized businesses, with many firms still finding it difficult to find cover at all and others struggling to survive.

According to research from leading business finance provider, Bibby Factors Northwest, a significant 94 per cent of firms are worried that employer's liability insurance premiums will rise again this year raising fears that many small companies will be put out of business.

In fact, almost half of owners and managers claim that they simply cannot afford an increase in liability insurance premiums this year with over two thirds expressing concern that further rises will force them to close their doors.

By far the biggest worry for owners and managers is the fact that this adds to the overall growing burden of regulation on businesses. Eighty-three per cent of entrepreneurs complain that the business sector is over-regulated and that they are struggling to cope with increasing levels of red tape.

Furthermore, 79 per cent of owners and managers argue that insurance companies are already making enough money out of small businesses without the prospect of further hikes this year.

This comes at a time when a recent survey revealed that nearly a quarter of small business owners and managers are also worried about the possibility of being taken to court by an employee. This suggests that the growing compensation culture in the UK is an increasing concern for small and medium sized businesses that do not have the financial resources to fight employee claims in court.