Top 5 Business Insurance Claims
According to a 2015 study from The Hartford, burglary and theft make up nearly 20% of all insurance claims each year. Without the right protection and coverage, businesses could lose large amounts of money. Here are the top 5 business insurance claims to be aware of.
Burglary and Theft
As stated above, burglary and theft make up 20% of all insurance claims each year. These claims include the loss of products, merchandise, and cost of damage resulting from the break-in. To avoid burglary and theft, make sure to install outdoor lighting and security precautions, and conduct a background check on your employees.
Water damage makes up about 15% of insurance claims per year. The most popular season for this claim is usually during winter when water freezes and pipes burst. Water damage can cost companies up to $17,000 in repairs, so it is important to have the right coverage.
Product liability is less popular and makes up about 5% of insurance claims. The susceptibility of product liability for your business is dependent upon what you do and what type of products you sell. If your company sells a product that is defected or could potentially cause injury, your business will be liable, which can result in up to $35,000 of financial fallout.
Any type of business can be susceptible to customer injury. All someone has to do is walk through your doors and slip over their own shoes, and as a business owner, you can be held liable. The average cost of a customer injury claim is $30,000, and they make up about 10% of insurance claims a year.
Last but certainly not least, any business can also be vulnerable to reputational harm such as libel and invasion of privacy. It’s important to steer clear of copyright infringement and criticism from competitors. Reputational harm makes up 5% of all insurance claims, and the average claim can amount to numbers as high as $50,000.
It’s vital to your business to purchase the right type of insurance coverage, so you avoid profit loss and keep your company and employees safe. If you have any questions about what type of coverage you should have, our team at Snellings Walters would love to help. Just reach out to us here.