Small-business owners hope they never have to file a claim, but research by financial services giant The Hartford reveals that 40 percent of small businesses file a claim within a ten-year period.
Where is your business most at risk? What insurance coverage should you invest in to protect your company?
The Hartford analyzed claims data and discovered the following top ten most common claims for small businesses. You can consider these incidents as the most likely threats to your business and plan accordingly.
1. Burglary and theft: One in five small businesses filed this claim. Keep in mind that the incidents of theft may involve outsiders or dishonest employees.
2. Water damage: Fifteen percent of small businesses suffered damage from water or freezing and filed claims for these incidents. These claims include damage to roofs from snow and ice as well as any damage caused by frozen plumbing.
3. Wind and hail: Fifteen percent claimed wind and hail damage. These inclement weather conditions can cause damage to many aspects of a business, including vehicles, buildings, and outdoor equipment.
4. Fire: One in ten small businesses made a fire claim. Fires can cause minimal damage, or they can completely destroy a property. It’s important that business owners not underestimate the potential fire has to cripple operations. Without adequate coverage, a small business might not recover from this type of disaster.
5. Slip and falls: Ten percent of small businesses experienced a customer slip and fall that resulted in a claim. Some companies are more susceptible to this risk than others. Consider how often members of the public visit your site to determine the amount of coverage you need for these incidents.
6. Customer injury/damage: Less than five percent experienced a claim for customer injury and damage. These are covered incidents that didn’t involve a slip and fall. These claims include damage to property or personal injuries such as those that occur if a product falls and hits a customer.
7. Product liability: Less than five percent made a product liability claim. The nature of a company’s business, what they produce, and any warranties provided are important factors that determine the level of product liability for any particular business.
8. Struck by an object: Examples of these claims include falling tools, moving vehicles, and mobile equipment. Less than five percent of small businesses made these claims.
9. Reputational harm: These claims include suits of libel and slander. If a party alleges that the company damaged their reputation, they may file a suit, which results in this type of insurance claim to cover the case. Less than five percent of small businesses made this type of claim.
10. Vehicular accident: Less than five percent made these claims. Often, good safety practices and appropriate driver safety training can help prevent auto accidents and allow companies to avoid this type of claim.
Every small business is exposed to some type of risk. Some are open to more liabilities than others. To ensure that your company has appropriate protection, contact my office. We can review your operations and determine which policies make sense for your business.
Together, we can put coverage in place that gives your company the security it needs for continued growth and success.