The Small Firms Association has warned of a looming crisis over insurance costs for business and said that 15 closures over the past year are the result of increases in insurance premiums and the collapse of Independent Insurance in the UK. "Further increases are unsustainable and will effectively make thousands of people unemployed as more closures become inevitable," said SFA director Mr Pat Delaney.

Insurance costs rose by an average of 41 per cent last year and many small business are facing the prospect of a further 50 per cent increase in 2002.