Whether you own an antique store, law firm, or any other type of the millions of small businesses, you face many risks each and every day. These risks typically fall into four categories—customers, income, employees and property.

Unfortunately, these risks can become real life claims in no time at all. In fact, a study by The Hartford found that 40% of small businesses will incur a property or liability loss within the next ten years. The study analyzed claim data from over a million policies purchased by small business owners.


Common Small Business Claims

While each business and its risks are different, these are the most common claims in the industry.

  • Burglary and Theft – 20%
  • Water/Freezing Damage – 15%
  • Wind and Hail Damage – 10%
  • Fire – 10%
  • Customer Slips, Trips and Falls –10%
  • Customer Injury and Damage – <5%
  • Product Liability – <5%
  • Struck by Object – <5%
  • Reputational Harm – <5%
  • Vehicle Accident – <5%


Precautions to Take as a Small Business Owner

As a small business owner, there are many steps you can take to avoid these claims. Minimize slips, trips and falls by removing items from the floor and walkways. Implement emergency plans for weather events and notify employees of the plans. Upkeep your building and surrounding property to avoid tree damage, water damage and fire hazards. When hiring, run background checks on potential employees and screen their driving records, if you plan on having them operate a company vehicle.

Even the most prepared business may find themselves facing a claim. Ensure you are well protected with insurance for small business owners. Lockton Affinity administers the policies to meet your small business insurance needs. We will work with you to create the right plan to cover your risks, giving you the insurance you need and nothing that you don’t.