Business Owners, Insurance & the Economy

A survey of business owners from Lance Surety Bonds is rather disturbing. It found that over half of business owners don’t really trust their insurance coverage. If the budget gets really tight and push comes to shove, they’ll drop their insurance policies to save money.

• 55% of those surveyed have skipped buying insurance because it is too expensive
• 51% would reduce their insurance, or drop it completely, if things get too tight
• 10% think having insurance and spending money on it is a total waste

Many are just not all that sure about their insurance.

• Just 45% say they are somewhat confident in their insurance policy
• 33% of solopreneurs are not confident in their insurance

Understanding an insurance policy often contributes to the lack of confidence in the process for many businesses.

• 39% say they have a business insurance policy they don’t understand
• 15% say they aren’t sure why they even have insurance at all

According to the survey, the economy is heavy on the mind of business owners and insurance is sometimes a big expense. The average annual cost of business insurance is $1,355.

• 17% say premiums went up last year
• The average rise hit $499
• 76% haven’t thought about options other than standard insurance
• 55% aren’t familiar with bonding or other insurance alternatives.

The survey also noted 58% think an economic downturn is the biggest threat to their business.

Source link: PropertyCasualty360.com — https://bit.ly/3MpS3oM