Study sheds light on insurance exposures and claims experience
WORCESTER, Mass., April 30, 2019 /PRNewswire/ -- A new study released today found that there is a direct correlation between small business owners' views and confidence in their insurance coverage based on past claims experience and satisfaction. The 2019 Small Business Risk Report, conducted by Forbes Insights, the strategic research and thought leadership practice of Forbes Media, and The Hanover Insurance Group, Inc. (THG), a leading property and casualty insurance company, surveyed small business owners across the country who had experienced a claim in the last five years to evaluate their claims experiences. The study also sought small business owners' perspectives regarding future vulnerabilities, and the value they place on risk management services.
The 2019 Small Business Risk Report concludes that 36 percent of respondents were unhappy with how their insurance claims were handled by their carriers. The study found these claims experiences impacted these small business owners' satisfaction, resulting in less confidence in their insurance program as well as their views on likelihood for future insurance claims. By contrast, 94 percent of small business owners who experienced a claim in the last five years and were highly satisfied with the result expressed overwhelming confidence in their overall insurance program.
Other key highlights from the study include:
- Cyber continues to be a growing concern for small business owners. While only 18 percent of small business owners reported facing a data breach incident in the past five years, 67 percent report they are becoming more vulnerable to cyber and data breach claims as they digitize their businesses.
- 52 percent of respondents believe it is likely that their businesses will have a claim in the next five years, with property damage, employee injuries and auto accidents rounding out the top three claims concerns. The type of business insurance claims a small business owner anticipates for the future directly mirrors their prior claims experience.
- The top three aspects of the business insurance claims experience that drive satisfaction for small business owners are fair payment of a claim, quick response and processing time, and knowledgeable claims professionals.
- While small business owners acknowledge the value of risk management services, approximately one-third of small businesses who work with independent agents reported they were not offered risk management services or were not aware of them.
The study findings suggest an opportunity for independent agents to consistently offer risk management services to help small business owners protect their business operations and get the most benefit from their insurance programs.
"As a leading provider of insurance for small businesses, it is critical for us to understand the evolving risks and exposures for business owners so that, together with our agent partners, we can provide the most comprehensive insurance solutions to meet their needs," said Michael R. Keane, president, core commercial at The Hanover. "Our annual Small Business Risk Report further validates the importance of claims and risk management and the connection both have to future insurance buying behaviors."
To view the results of the 2019 Small Business Risk Report, please visit hanover.com/2019-small-business-risk-report. For more information about The Hanover's small commercial insurance products and services, please visit hanover.com.
About Forbes Insights
Forbes Insights is the strategic research and thought leadership practice of Forbes, a global media leader that champions success by celebrating those who have made it, and those who aspire to make it. By leveraging proprietary databases of senior-level executives in the Forbes community, Forbes Insights conducts research on a wide range of topics to position brands as thought leaders and drive stakeholder engagement. Research findings are delivered through a variety of digital, print and live executions, and amplified across Forbes' social and media platforms.
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agents, The Hanover offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.
Emily P. Trevallion
Abby M. Clark
View original content to download multimedia:http://www.prnewswire.com/news-releases/forbes-insights-and-the-hanover-insurance-group-report-findings-from-its-2019-small-business-risk-report-300840792.html