With the small business risk landscape continuing to evolve, The Hanover Insurance Group, Inc., a leading property and casualty insurance company, today released its 2022 Small Business Risk Report, which looked at the key business risks, purchasing decisions, and communication and insurance management preferences for small business owners. The Hanover partnered with Statista, a leading data analytics firm, to survey 300 small business owners throughout the United States.
The 2022 Small Business Risk Report found employee issues are top of mind, with over two-thirds of small businesses rating employee dishonesty as a major risk area. And while employee dishonesty takes the top spot among small business owner concerns, surprisingly, only 54% are extremely confident that they are well protected from these sorts of risks. Business owners recognize proper protection is critical to their success, creating opportunities for independent agents to discuss emerging risks identified in the report.
Other key highlights from the study include:
- Independent agents are viewed as a key resource to small business owners for insurance buying. More than half (57%) of respondents say that advice or recommendations from an agent are critical to their decisions.
- Small businesses are typically not reviewing insurance policies regularly. 42% of respondents indicated they have not reviewed their policies within the past 12 months.
- Small businesses may be unaware they need more specialized insurance protection. 78% of small businesses engage in one or more activities that present a professional liability risk exposure and 69% engage in activities that present a marine risk exposure.
- Relationships matter. 90% of companies purchased either all or some of their insurance coverage through local independent insurance agents.
- Claims handling influences insurance carrier selections. - 56% of respondents who changed workers' compensation carriers did so because they were dissatisfied with claims handling. This speaks to the importance of expert claims handling as a key component of a workers' compensation solution.
- Protection is more important than cost. 79% of small businesses agree that proper coverage is more important than price.
"After a challenging couple of years, small business owners are looking to protect their companies, employees, and customers, and to be sure they can overcome the uncertainties that may arise," said Michael R. Keane, president of core commercial at The Hanover. "Our 2022 Small Business Risk Report highlights that business owners value risk mitigation guidance and the advice and expertise of their independent insurance agent. By sharing these insights and opportunities, we hope to empower our agents and customers with the insurance products and services they need. The report concludes that small business owners' risks and preferences continue to evolve. We are committed to providing resources and services to support our agents and small business customers."
To view the results of the 2022 Small Business Risk Report, please visit https://sites.hanover.com/2022-small-business-risk-report/.