The improving economy and housing market has been pushing consumer confidence higher, as it reached a five-year high in May.
With consumers feeling more confident, small companies across the country could see additional business, which could lead to an increased need for liability insurance.
The Conference Board Consumer Confidence Index increased from 69 in April to 76.2, while the Present Situation and Expectations Indexes also showed monthly improvement.
“Consumer Confidence posted another gain this month and is now at a five-year high,” said Lynn Franco, director of economic indicators at The Conference Board. “Consumers’ assessment of current business and labor-market conditions was more positive and they were considerably more upbeat about future economic and job prospects.”
David Sloan, senior economist at 4Cast Inc, told Bloomberg that the economy and confidence will improve together moving forward.
With that said, small business owners might want to consider purchasing additional liability insurance as the economy grows. This could come in handy for numerous companies, such as retailers, that could see more customers on their property, potentially increasing the chances of an incident that could lead to a lawsuit.