Commercial insurance is very important for your business since it protects you against extraordinary, and often very costly, events. However, you might not realize how often and how impactful these claims can be.
The Hartford reports 40 percent of small businesses incur a liability of property loss within 10 yearsc
Burglary & Theft
If you guessed robberies and thefts are top of the list, you’re right. A fifth of all business insurance claims are for these reasons, whether perpetrated by strangers, employees, a friend or a business associate.
Fortunately, the average claim for burglary and theft is one of the lowest at about $8,000. Still, that’s nothing to sneeze at.
Water & Freezing Damage
These claims account for 15 percent of overall claims. They can involve problems such as damage caused by ice and snow or broken pipes.
Unfortunately, water and freezing damage is also expensive with an average claim amount of $17,000.
Wind & Hail Damage
Fifteen percent of all claims are due to wind and hail damage. This includes damage to your building, other structures, outdoor equipment, and automobiles. The average cost of a claim? $26,000.
Fire only accounts for 10 percent, but it comes with a hefty price tag. The average cost of a claim is $35,000. Even small fires can cause extensive damage to equipment, furnishings, and structures.
Customer Slips & Falls
Another 10 percent of claims originate from injuries caused when a customer or visitor slips and falls on your property. The average cost for a settlement or medical bills is $30,000.
Struck By An Object
Less than five percent of claims originate from accidents from moving objects such as vehicles or falling objects. The average cost of a claim is $10,000.
If your company sells products and a customer claims it caused them harm, they could sue. Fortunately, these claims account for less than five percent of all claims, but the average claim is very costly at around $35,000.
Reputational harm claims account for less than 5 percent of all claims. These include third-party actions for actions they claim caused them harm, such as slander and libel.
Even though these claims do not occur frequently, they are the most expensive with an average cost of $50,000.
Surprisingly, vehicular accidents account for less than 5 percent of all business insurance claims. However, they’re the second most costly with an average claim’s cost of $45,000.
No two businesses face the same risks, so it is very important you buy insurance coverage tailored specifically to your company. In today’s litigious environment, a standard business owner’s policy may not provide you with the liability coverage you need.
Regular reviews with your insurance agent ensure your insurance is always aligned with your needs. Don’t assume you’re properly covered. Rely on us and rest easy knowing it is.