Small businesses are underinsured: Hiscox

Overview of Hiscox's Findings

A recent report from Hiscox highlights a concerning trend in the small business sector: approximately 77% of small businesses in the U.S. are underinsured. This indicates that a significant number of these businesses may lack adequate coverage to protect against potential risks and losses.

Key Insights

The Hiscox Underinsurance in Small Business Report sheds light on critical data regarding the insurance landscape for small businesses. The findings suggest that many owners may not fully understand their coverage needs or the risks they face.

Implications for Small Business Owners

This underinsurance can leave businesses vulnerable to financial setbacks. For instance, an unexpected event like a natural disaster, theft, or liability claim could severely impact an underinsured business’s ability to recover. The report encourages small business owners to review their coverage regularly to ensure it aligns with current needs and risks.

Industry Response

Insurance professionals are urged to engage with small business clients proactively. By explaining the importance of appropriate coverage and providing tailored solutions, insurers can help mitigate the risks associated with being underinsured.

Conclusion

The Hiscox report serves as a reminder for small business owners to take a closer look at their insurance policies. Understanding the potential risks and ensuring adequate coverage is essential for safeguarding their operations and financial health.

Original Source: https://www.dig-in.com/news/small-businesses-are-underinsured-hiscox