Insurance Can be Complicated — Small Business Struggling to Understand

NEXT Insurance looked at small business owners and what they know about insurance. The survey found a huge gap between what could be a problem for them and what they actually understand about the insurance involved with that problem.

The survey polled 500 business across the country and found that 96% of them didn’t get a passing grade in general insurance knowledge and 90% said they aren’t confident that they’re adequately insured.

Worse, only a third of the 500 sought out professional insurance agents to help them properly cover their insurance needs.

NEXT’s Alon Shiran said the good news is that — after taking the survey — 82% said they’d be contacting an independent insurance agent to go over their risks.

Other findings:

  • 51% said making a mistake could negatively impact their business this year
  • 68% are concerned about inflation, reduced consumer spending and supply chain issues
  • 90% don’t think they’re adequately insured
  • 29% have no insurance at all
  • 51% said their business is less than very prepared
  • 18% do not plan to take any steps to fix things in the near future

The last and most important answer was that 53% had no idea what insurance coverage they need.

“Small business owners today have to wear a number of hats, and often feel pressured to be experts in everything from taxes and insurance to finance and HR,” Shiran said. “This is an unrealistic expectation, and thankfully there are many resources designed to support small businesses with guidance, education and tools needed to tackle some of the most common challenges they face.

Source link: Insurance Business America —

About PIA Western Alliance

The Professional Insurance Agents Western Alliance is a membership organization promoting and enhancing the success of independent agencies seeking to grow, learn and be heard within the industry.


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