A New Risk Report Highlights Some Serious Small Business Insurance Gaps

on June 4, 2019

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.

Download this!

How to Be Indispensable to Your Clients

Pricing pressures and the high cost of maintaining out-of-date systems is progressively decreasing profitability for most brokers—leaving them two choices: differentiate or a race to the bottom on price.

Download the whitepaper to learn how you can differentiate from competitors.

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.

Download this!

How to Be Indispensable to Your Clients

Pricing pressures and the high cost of maintaining out-of-date systems is progressively decreasing profitability for most brokers—leaving them two choices: differentiate or a race to the bottom on price.

Download the whitepaper to learn how you can differentiate from competitors.

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Toby Graham

Toby manages the marketing communications team here at KPA. She's on a quest to help people tell clear, fun stories that their audience can relate to. She's a HUGE sugar junkie...and usually starts wandering the halls looking for cookies around 3pm daily.

Toby GrahamA New Risk Report Highlights Some Serious Small Business Insurance Gaps