Small businesses — and the owners of such — struggle with understanding insurance as much as most individuals don’t get how their personal lines insurance works. That means, they, too, are often underinsured.
Hiscox recently took a survey of small business owners. Of the businesses surveyed, 70% of the owners and managers of 1,000 businesses had a serious lack of understanding of the insurance they currently carry.
Shockingly, 75% of them are not properly insured. An even bigger concern comes from what we noted in the opening paragraph. When it comes to understanding insurance, things fall apart.
- 71% have no understanding at all of what their business policy covers
- 83% could not accurately describe what a general liability policy covers
- 30% didn’t have a general liability policy
- 40% had not updated their general liability policy in a decade or more
Here’s what those businesses did have:
- 65% do have general liability coverage
- 45% purchased property insurance
- 35% covered their workers with worker’s compensation insurance
- 32% have professional liability insurance
Hiscox also noted in its conclusions how invaluable the independent insurance agent is to the process of insuring a business. Their advice and knowledge is incalculable.
- 70% of small businesses prefer to purchase insurance through an independent agent or broker
- 56% of the 1,000 businesses surveyed found the relationship with an independent agent to be their most helpful source of information about insurance
- 42% prefer to purchase their insurance in person
- 29% want to purchase business insurance online
Source link: Insurance Business America — https://bit.ly/490cGii
Source link: Insurance Journal — https://bit.ly/46F7Qp6