There is a direct correlation between small business owners’ confidence in their insurance coverage and their past claims experience, according to a new study from The Hanover Insurance Group and Forbes Insights.
Thirty-six per cent (36%) of respondents to the 2019 Small Business Risk Report said that they were unhappy with how their insurance claims had been handled by carriers. The study found that this dissatisfaction impacted their confidence in their insurance coverage as well as their views on the likelihood of future claims. Meanwhile, 94% of small business owners who were highly satisfied with their claims experience expressed confidence in their overall insurance program.
The study also found that cyber liability continues to be a growing concern for small business owners, with 67% saying that they are becoming more vulnerable to cyber and data breach claims as they digitize their business.
More than half of respondents believe it is likely that their business will have a claim within the next five years, with the top three claims concerns being property damage, employee injuries and auto accidents.
“As a leading provider of insurance for small businesses, it is critical for us to understand the evolving risks and exposures for business owners so that, together with our agent partners, we can provide the most comprehensive insurance solutions to meet their needs,” said Michael R. Keane, president of core commercial at The Hanover. “Our annual Small Business Risk Report further validates the importance of claims and risk management and the connection both have to future insurance-buying behaviors.”