Consumer spending is expected to rise markedly in 2013, which could lead to additional business at small retailers. With more consumers shopping at retailers, these companies might want to re-consider their liability insurance needs, as a single fall by a customer could lead to a costly lawsuit.
The National Association for Business Economics said consumer spending will jump 2.3 percent this year, up from 1.9 percent in the previous forecast in February.
“Home prices are going up, and with also the improvement in the unemployment rate, people will be more willing to buy,” said Nayantara Hensel, chair of the NABE survey.
Rising home prices could play a large role in higher consumer spending, as having more equity in their homes could lead them to be more willing to spend.
The CoreLogic Case-Shiller Indexes said home prices increased 7.3 percent in 2012, and are expected to rise 3.9 percent annually over the next five years.
To prepare for the potential of additional business, retailers might want to re-visit their liability insurance plans. It is important to have enough insurance to cover the costs of a lawsuit resulting from an injury on company property.