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A New Risk Report Highlights Some Serious Small Business Insurance Gaps

Toby Graham /
Cracked mud

It’s difficult to pin down or quantify, but it’s there. Perhaps you’ve sensed it in the market, felt it in conversations with clients and prospects, or discussed it with colleagues:

There’s a disconnect between insurance providers and small business owners.

Now we have the numbers to prove it. According to the 2018 Small Business Risk Report, published by the Hanover Insurance Group and Forbes Insights, the overwhelming majority (80%) of small businesses “recognize they are exposed to risk in multiple areas” but only 37% “have strong confidence they are adequately insured.”

The report reveals that small business owners are paying close attention to the influx of news stories about workplace harassment and security breaches, and that SBOs generally acknowledge their risks are increasing and evolving. At the same time, relatively few decision makers—by their own admission—are taking the necessary precautions to protect themselves and their organizations:

  • 2 out of 3 small business owners think they aren’t spending enough time “assessing insurance needs or exploring insurance coverage options.”
  • A mere 21% of SBOs call on outside experts for help in evaluating and obtaining coverage.
  • Almost half (43%) of all SBOs have not reviewed their coverage in the past year.

Read the full report.

Alarming as these numbers may seem, they present an opportunity to brokers. Loss control and risk management professionals can win significant business and outperform the competition by proactively addressing the needs of their clearly overwhelmed clients and prospects. KPA makes it easy. With our comprehensive, all-in-one platform, an insured business can automate manual processes, reduce total cost of risk, and prevent incidents and accidents. Our Risk Management Center provides your insured companies top-down visibility and intelligence that their HR, safety, and risk managers need to proactively address areas of risk. Interactive regulatory reference tools help clients proactively identify risks and stay current on evolving regulations.

The Risk Management Center is built to address many of the areas of liability that 2018 Small Business Risk Report respondents considered top concerns, including…

  • loss of employee(s) critical to operation,
  • business interruptions,
  • physical damage to company assets,
  • safety/well-being of employees,
    and
  • lawsuits from current, former, or prospective employees.

Be your clients’ indispensable, trusted business consultant by providing strategic, measurable value and helping to reduce claims. Learn more about KPA’s insurance broker solutions.

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