90% of Small Businesses Lack Confidence in Being Adequately Insured, Survey Finds

A recent survey by NEXT Insurance identified that U.S. small business owners tend to lack preparedness and knowledge when it comes to insurance coverage. Among the?500 small business owners surveyed, 96% failed to achieve a grade of 70% or higher on an insurance knowledge test, and only a third of respondents consulted with an insurance professional.

The survey indicated that more than half of the participants were concerned about professional mistakes, while?68% are worried about inflation. Other concerns relate to lower rates of consumer spending, a potential recession and supply chain challenges.

Despite small businesses’ fears, more than a quarter of them said they do not have insurance coverage, and more than half feel they are “less than very prepared” in the event of a possible mishap.

“I found it shocking that almost one in three small business owners is uninsured,” said Kevin Cuyler , Manager, Commercial Insurance,? Burns & Wilcox , New Orleans, Louisiana.

In 2017, Insureon issued a survey that found?over a third?of small business owners dealt with an issue over the past year that could have warranted an insurance claim. The top incident was related to customer complaints, followed closely by employee injury and vandalism.

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