FACT: Over 40% of businesses that experience a serious loss never reopen their doors. Many business owners understand the need for Property and Casualty (P&C) insurance, but not all realize how close it can hit to home.

The two functions of P&C insurance are to (1) prevent losses and (2) help recover from losses. Whether you are a large or small business, you must protect yourself from financial loss. Below are some shocking statistics all business owners should be aware of:

FACT: 14% of small business common claims include personal injury to others (non-employees) and damage to property of others.

Today, businesses can be sued for almost any reason (employee injury, property damage, data breach and more). Most small business owners take advantage of a general liability policy to provide a broad range of protection for their assets.

FACT: In a year’s time, employers have reported over 900,000 days in which employees were unable to work due to on-the-job injuries and illnesses.

A Workers’ Compensation policy helps to cover medical and hospital bills, lost employee wages, and long-term benefits. Without this coverage, you, the employer can be sued and held liable for associated costs. For more information on Workers’ Compensation, check out “5 Ways to Protect Your Business with Workers’ Compensation“.

FACT: 1 in 5 businesses are affected by a storm or other catastrophic event.

Whatever disaster may strike- hurricane, flood, or earthquake, a commercial property policy can provide flexible coverage for those unforeseen situations. Coverage includes property your business owns or leases, accounts receivable records, computers, media, and can help replace lost income when your operations may be suspended.

FACT: 13% of small business common claim incidents involve company vehicles.

Most businesses already have their company cars and owners insured. But what happens when you send an assistant out on a coffee run and they get into an auto accident on the way back? In this situation the business can be held liable. A commercial auto policy provides coverage for your employees as well as the automobiles, even if they are rented or borrowed.

Nearly 60% of small business owners do not have the information they need to determine their risk. To better understand the financial risk your business may face, talk with a licensed professional. They will be able to discuss what insurance options are right for your business.

Statistics Source: The Hartford

Photo Credit: Rich Johnson

Stephanie Allen

Stephanie obtained her IMBA in 2012 and started her career at MPAY shortly after. After a year in customer service, she transferred to MPAY’s marketing team, bringing her knowledge of the industry, excitement, and love for marketing.