According to a recent article by ¹Canadian Underwriter almost 40% of small business owners say they don’t have a business insurance policy, and another 25% say they don’t think they need it, finds a recent survey of 222 small business owners and self-employed professionals in Canada.
Among the 40% who don’t have a business insurance policy, the reasoning varies. One quarter (25%) feel they don’t need it, while others say they don’t because it costs too much (16%). Another 16% say it’s because they have personal home and auto insurance, while another 13% admit they haven’t thought about it.
“Some of the views small businesses have on business insurance are troubling,” notes Danish Yusuf, founder and CEO of Zensurance, in a press release. They may not be aware of the risks they are taking that could prove to be financially catastrophic without an insurance policy.”
The report also advises business owners not to conflate home and auto insurance with business insurance. “The personal insurance coverage you have for your home or condo and vehicle is not designed to cover you for accidents and incidents related to business activities. Even if you have a home-based business, your residential coverage may not be sufficient for your risks,” it reads.
The survey also looked at what factors influenced small business owners to pursue an insurance policy. Among those who have a policy, 15% say it’s a legal or regulatory requirement for their industry or profession. Thirteen percent say an insurance broker influenced them, while another 13% say they were encouraged by family, friends or colleagues. Eight percent say a mentor encouraged them, while 3% cite advertisements, and 2% say stories in the media motivated them to get a policy. Christine Gaudreau (FCIP, CRM) from OTC Insurance in Dartmouth, Nova Scotia says "We are seeing about the same numbers here in Nova Scotia but we do our best to make business insurance as easy as possible for our clients"
Business owners’ biggest concerns include the effect of inflation (51%), followed by the cost of gasoline (16%) and managing cash flow (13%). Only 6% cite the cost of business insurance as a concern, while another 2% are worried about the ability to get insurance. Five percent worry about supply chain reliability, while 9% say none of the above.
Do you have questions, or just need more information? OTC Insurance is here to help you in anyway we can. Click below to learn more about our Business Insurance.