As reported by SME Today, small businesses are being urged to prepare for rising insurance costs in 2026, as inflation and increased claims continue to push premiums higher

The 2025 Premium Credit Insurance Index found that 51% of SMEs reported higher insurance costs over the past year, with 10% describing the increase as “dramatic.”

The warning comes amid broader financial pressures following the chancellor’s recent announcements, which introduced measures affecting operational costs. Many small and medium-sized businesses are already facing tighter margins, and rising insurance premiums could add to the strain if action is not taken before policy renewals. SMEs that borrowed to pay premiums took out an average loan of £1,180, nearly 10% higher than the previous year’s average of £1,080.

The report highlights that the frequency of claims is a key driver of premium increases. Businesses that invest in employee training – from health and safety to cyber awareness, manual handling and safe driving – can reduce incidents and help manage future insurance costs. Early planning and proactive risk management are increasingly seen as essential tools for SMEs to protect both staff and finances in 2026.