Despite reports that more people plan to holiday in Britain in 2009, the caravan industry is emerging as the latest victim of the recession. At the end of last year major names in the industry are understood to have cut or decreased staff production in the face of the most aggressive downturn the industry has seen, with worrying implications for suppliers.

Now the credit insurers, concerned that the leisure industry will be the next sector to be hit by the recession are either increasing premiums or withdrawing cover altogether for businesses that supply caravan parts or mobile homes.

The director at Coface said “We have started to withdraw cover, We are looking for minimum premium increases of 20% and significantly higher than that in specific areas” He goes on to say “Obviously in the current environment our individual discretionary spend is going to become tighter and tighter”.

Insurers are concerned that there will be that more corporate collapses in the recession. Previously insurers relied on annual accounts but the economic environment was deteriorating so rapidly that these figures no longer gave an accurate picture. Companies are now being asked to provide their credit insurer with financial information that is not more than three or six months old.

Martin Holland, Managing Director of the credit and surety division of insurance broker Heath Lambert said that premiums were rising by between 15pc to 30pc on average for businesses that supply major parts such as windows and doors, fixtures and fittings, and even curtains to caravan and mobile homes. It is not just the caravan industry that is in danger; concerns have recently heightened about motor homes. In the past two months caravan manufacturer Atlas Holiday Homes have appointed administrators.