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.