There's a 40% chance of a claim.
No one plans to sustain any losses or file a claim when they purchase their insurance policies and most look at insurance as protection against extraordinary events. BUT unfortunately losses occur more frequently than most business owners expect. According to a study by The Hartford, 40% of small businesses will have a property or liability loss within a 10-year period.
In the study these are the top 10 most common claims by small businesses and the percentage of such claims made.
Some types of claims clearly occur more frequently than others. Yet frequency is only one piece of the puzzle, the other is the claim severity (size of the claim). Here is just a few average cost of claims:
Burglaries and thefts generated the largest number of claims but the average claimed amount was relatively small.
We threw all of this information out there to say that claims are going to happen, we wish we could tell you otherwise, we really do. BUT the lesson you should take away is make sure you review your policies and make sure you are covered in all of these areas! If you are unsure about your coverages, contact your agent, they will be more than happy to review your coverages with you.
As always, the more you know about your coverage, the better of you are!