Most small business owners feel they don't have adequate insurance
A new study conducted by The Hanover Insurance Group, Inc., and Forbes Insights, the strategic research and thought leadership practice of Forbes Media, found that less than 37% of small business owners feel they have adequate insurance protection.
The joint 2018 Small Business Risk Report concluded that small business owners are concerned about increasing risks including cyber, employment practices liability, and crime exposures, yet often are not spending enough time assessing their insurance needs and ensuring they have the right insurance solutions.
Assessing insurance needs
In fact, less than half of small business owners surveyed indicated they are spending sufficient time assessing their insurance needs.
Other key highlights from the report included:
- Small business owners overwhelmingly said breadth of coverage, not price, is the number one consideration when buying insurance for their companies.
- Although small business owners were aware they faced risks, only about half have reviewed their insurance coverage in the past year.
- Of those, just 21% said they leveraged recommendations about insurance coverage from outside experts.
- The top three concerns of small business owners included data breaches, loss of employees and business interruption.
“With risks evolving and becoming more complex, it’s more important than ever for small business owners to evaluate their insurance needs to help ensure they are properly protected,” said Michael R. Keane, president of core commercial insurance at The Hanover. “This presents a tremendous opportunity for independent agents to provide expert counsel to help assess small business owners’ risks, identify solutions, and guide them through the insurance buying process.”