Insuron polled 2,400 small business owners recently and found a third of them are using Amazon and eBay to sell their wares and to reach customers. That’s not surprising considering a recent Kiplinger forecast says web sales are going to jump at least 15% this year.
Jeff Somers is Insureon’s president. He said what 31% of these businesses don’t have — and it’s dangerous — is product liability insurance. That 31% needs to pay attention because while just 2% of firms report products that have caused injury or illness, a lawsuit over one or both could cost somewhere between $4,000 and $190,000.
In an interview with Insurance Business America Somers said, “We find that 74% of small businesses are underinsured today, so they don’t have the necessary insurance in place. They may have some insurance, but not everything they need in order to really cover their business comprehensively. Forty per cent (40%) are completely uninsured. They’re not completely aware of exactly what they need in order to operate their business without risking everything that they’ve put into their business to begin with.”
He said a big part of the problem is most businesses just assume they aren’t selling a defective product so why get insurance? That’s a bad place to be Somers said when your entire livelihood and future depend upon that business.
“Given the fairly limited resources most small businesses have, all it takes is one claim against their business to potentially put them out of business,” he said.
Somers suggest that agents and brokers pay attention to those they interact with in their community and check in with them to see whether they are properly insured or not.
Source link: Insurance Business America