A new study has found that small business owners' views and confidence in their insurance coverage is based on past claims experience and satisfaction.
The 2019 Small Business Risk Report, conducted by The Hanover Insurance Group, Inc., and Forbes Insights, surveyed small business owners across the country who had experienced a claim in the last five years to evaluate their claims experiences. The study also sought small business owners' perspectives regarding future vulnerabilities, and the value they place on risk management services.
The 2019 Small Business Risk Report concluded that 36 percent of respondents were unhappy with how their insurance claims were handled by their carriers. The study found these claims experiences impacted these small business owners' satisfaction, resulting in less confidence in their insurance program as well as their views on likelihood for future insurance claims. By contrast, 94 percent of small business owners who experienced a claim in the last five years and were highly satisfied with the result expressed overwhelming confidence in their overall insurance program.
Other key highlights from the study included:
- Cyber continues to be a growing concern for small business owners. Although only 18 percent of small business owners reported facing a data breach incident in the past five years, 67 percent reported they are becoming more vulnerable to cyber and data breach claims as they digitize their businesses.
- 52 percent of respondents said that they believe it is likely that their businesses will have a claim in the next five years, with property damage, employee injuries, and auto accidents rounding out the top three claims concerns. The type of business insurance claims a small business owner anticipated for the future directly mirrored their prior claims experience.
- The top three aspects of the business insurance claims experience that drive satisfaction for small business owners are fair payment of a claim, quick response and processing time, and knowledgeable claims professionals.
- While small business owners acknowledge the value of risk management services, approximately one-third of small businesses who work with independent agents reported they were not offered risk management services or were not aware of them.
Learn more: hanover.com/2019-small-business-risk-report.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].