NU Online News Service, May 19, 8:10 p.m. EDT--A new survey conducted by Trusted Choice found that many small business owners in the U.S. face troublesome insurance coverage gaps or do not fully comprehend their level of coverage.
"This survey shows that many small business owners have inadequate business interruption coverage, and are confused about what protection it actually provides," Madelyn Flannagan, a spokeswoman for Trusted Choice.
Trusted Choice is a consumer marketing brand created by the Alexandria, Va.-based Independent Insurance Agents & Brokers of America to promote the independent agents nationally.
The national survey - conducted April 11 to 22 by International Communications Research based in Media, Pa, surveyed 500 small businesses defined as a business with fewer than 100 employees and less than $1.5 million in revenue.
The results showed that a significant population of the survey pool either did not have business-interruption coverage or had never heard of it.
Business-interruption protection covers businesses in the event of accidents resulting in lost income or reduced income from temporary closure. More than half of the owners surveyed, 54 percent, did not have the coverage. Another 20 percent were unaware that it even existed.
Of those surveyed, 45 percent of the business owners did not purchase the coverage because they did not feel that it was necessary. Nineteen percent said it was too expensive and 16 percent lacked knowledge on the subject.
Among those owners who did seek business-interruption coverage, 86 percent of those surveyed said they are "very" or "somewhat" likely to keep their coverage.
"Of those businesses that suffer a serious loss [from business interruption], almost half never reopen==and those that do, more than one-fourth close within three years." Ms. Flannagan said.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
