In the second quarter of 2014, small businesses saw a huge leap in growth, adding 89,000 more jobs than they did during the same period in 2013. Economists believe more jobs are translating into more spending power, as the US economy showed a 4.2 percent annual growth rate during Q2 – faster than initially predicted by the Commerce Department, according to the Associated Press. Small business is proving critical to the recovering economy. Steadily increasing small business growth means the price of commercial insurance policies is trending up as well.
In New York, General Liability and Workers’ Compensation prices showed small increases year over year this quarter. New York is less likely than other states to see large Workers’ Comp growth. Unlike the rest of the country, where Workers’ Comp is the only option employees and subcontractors have to collect benefits following on-the-job injuries, NY workers can file claims against the GL carrier as well, explains Monika Bolkun-Robert, partner at Manhattan-based insurance agency Schaefer Enterprises, Inc. “Carriers that provide this coverage are charging for it accordingly.”
