Demand for business insurance among shops, hospitality and leisure sectors spiked by almost 40% in the week that it was announced that business rates would be cut by half – suggesting a surge in business confidence, according to SME insurance provider Superscript.
Following Rishi Sunak’s announcement of the biggest single-year cut to business rates, the amount of businesses buying insurance from the impacted sectors rose by 38% compared to the week before. Meanwhile, the day of the announcement itself saw a steep 46% increase of businesses buying insurance, and a further 34% rise on top of that over the remainder of the week.
The news comes amid a boom in independent shops and businesses – which are increasingly being seen as the saviour to the local highstreet. According to Local Data, more independent stores opened then closed in the first half of this year for the first time since 2017.
Cameron Shearer, Co-Founder & CEO of Superscript, said:
“We welcome the move to cut business rates, as it should provide some much needed relief for the retail, leisure and hospitality sectors after an incredibly difficult couple of years. The spike we have seen in demand for business insurance in these sectors seems to suggest that it has boosted industry confidence in the short-term. This is a very positive development. However, during this unstable time, we need to provide local businesses with an environment where they can thrive in the long-term. Superscript is doing this by providing monthly business insurance that gives them the flexibility they need to grow, evolve and pivot in a fast-moving time.”
Superscript provides cover for over 200 types of independent shops; as well as hospitality and leisure businesses. Key covers include: public/products liability; employers’ liability; building, contents and stock; business interruption; as well as many others.