A new insurance survey’s findings showed that 75% of small businesses are inadequately insured, and a considerable 70% lack a clear understanding of the scope of their business insurance.
The survey emphasized the invaluable role of local insurance agents and brokers for small business owners. Despite the rise of online platforms, a significant 70% of small business owners with insurance still prefer purchasing through an agent or broker. Moreover, 56% found them to be the most helpful source of information.
The survey also highlighted a comeback for physical businesses, with 42% of respondents opting to purchase insurance in person, countering the global shift to online purchases seen during the pandemic. In comparison, 29% chose online platforms.
Another revelation was the widespread misunderstanding among small business owners regarding fundamental insurance policies. A notable 71% had no understanding of what a business owner’s policy covers, and 83% could not accurately describe a general liability policy’s coverage.
The survey also raised a red flag with a significant portion of small businesses lacking essential insurance coverage. More than three in 10 did not possess general liability insurance, a fundamental policy. Almost four in 10 that had been operating for 10 years or more had also never updated their general liability insurance.
In light of these findings, Hiscox outlined critical recommendations for brokers handling business-owning clients who are seeking comprehensive insurance coverage:
In recent news for the specialist insurer, Hiscox also announced the sale of its business operations in Singapore and Thailand.
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