Are You One Of The 80% Of Business Owners That Think Your Insurance Won’t Cover the Next Claim?
According to the smart and sophisticated folks at Gallagher (the fourth largest insurance Agent/Broker in the world with $8.38 B in 2022 revenue (1) ) the #1 worry of business owners is that “their insurance policies may not cover specific events or losses, as well as concern about extreme weather, cyberattacks, and supply chain disruptions, reported Risk & Insurance.” (2)
Business Insurance For SMBs
This is significant to Small-Medium-Businesses (SBMs) because of the massive Merger and Acquisition activity in the independent insurance agency industry over the last few years.
Your tried-and-true local independent insurance agent, who understood your business, your history, and your challenges because he visited with you a few times a year, is being gobbled up by the big national agencies. He is now forced to concentrate on ever-larger accounts and push your business down to lesser qualified staff who don’t know you, your business, or your insurance exposures. He’s not a bad guy and the large shops aren’t bad people, it’s just simple economics, those goliath-sized shops can’t afford to pay commissions on “smaller” business. Your agent has no choice.
At a time when SMBs most need guidance, insights, and recommendations on how to spend their limited resources to best protect their assets, those resources are getting harder and harder to find.
Key Findings From The Business Insurance survey (paraphrased) (2):
- 80% of U.S. business owners are worried their business insurance will not cover a specific event or loss.
- 91% of respondents are concerned about the impact of extreme weather conditions or natural disasters on their business.
- 69% of business owners are concerned about cyberattacks, yet only 32% have cyber coverage.
- 81% of business owners plan to maintain or increase AI investments in 2024, despite concerns about exposing sensitive information (37%), regulatory risks (35%), and making their work obsolete (35%).
Ironically, these insights come from one of the largest agencies in the world.