The Hartford Financial Services Group stated that by 2025, four out of ten small businesses will file general liability or property claim.
This data was obtained by The Hartford Financial Services Group of claims of more than one million Hartford Business owner policies between 2010-2014.
The report stated that the most common property and general liability were:
Burglary and theft = 20%
Damage from Water and freezing = 15%
Damage from Wind and hail = 15%
Damage from Fire = 10%
Customer slip and fall = 10%
However, when it came to the dollars associated with these claims, the figures have a more impactful and tangible meaning with the averages per claim being:
Reputational harm = $50,000
Vehicle accident = $45,000
Damage from Fire = $35,000
Product liability = $35,000
Customer injury and damage = $30,000
Additionally, 35% of general liability claims result in a lawsuit. Is your small business ready and able to cover a lawsuit? Are the owners and officers properly insured to help mitigate the out-of-pocket expenses that may be incurred?
What can you do as a small business owner to minimize exposure?
As yourself the following questions:
Do we have the proper controls protecting our clients’ data?
What is our protocol when it comes to security breaches?
Do we conduct background checks on all new hires?
Do we have permission to post information on products, services, pictures, and videos, on our company website?
Do we openly criticize or share ‘grey’ information about competitors or their products/services?
Do we have a policy on the use of personal vehicles for company use?
Talk to your broker to ensure that you are properly insured. After all, a cheap rate may not be what you need, as, you never know when there will be a claim and if a lawsuit will increase that claim.
For more information on the study made by The Hartford, visithttp://www.thehartford.com/loss-control/
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