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.

1. Burglary and Theft - 20%: The perpetrators of these crimes may be dishonest employees or outsiders.
2. Water and Freezing Damage - 15%: Claims involving roof damage from snow or ice and damage caused by frozen pipes.
3. Wind and Hail - 15%: Affecting automobiles, outdoor equipment, buildings, and other structures.
4. Fire - 10%: One of the most common causes of property damage but many underestimate its destructive power.
5. Customer Slips and Falls-10%: Any type of business can incur this sort of claim but your company might be more vulnerable if customers regularly visit your premises.
6. Customer Injury and Damage - less than 5%: A customer might be injured in your office when something heavy falls off a shelf and hits them in the head.
7. Product Liability - less than 5%: Your vulnerability to a product liability claim depends on a variety of factors such as the nature of your product and any warranties you make when you sell it.
8. Struck by an Object - less than 5%: A wide variety of moving objects can cause injuries.
9. Reputational Harm - less than 5%: These are third-party claims for acts such as libel and slander.
10. Vehicular Accident - less than 5%: A vehicle safety program can help prevent auto accident claims.

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:

• Reputational Harm: $50,000
• Customer Slip & Falls: $20,000
• Fire: $35,000
• Burglary & Theft: $8,000

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!