We know that as soon as your advertising plan is set in stone and your pay method is up and running, there are so many things to take care of for a business’ daily operations. The detailed findings from a recent NEXT insurance survey shed light on very serious stressors facing small businesses in 2023, and the level of preparedness they have when it comes to insurance coverage. Even though many small business owners have done great with the innovation and planning required to get started, they may lack sufficient insight when it comes to being adequately covered. 90 percent of the small business owners surveyed were unsure if their current coverage was enough to weather any event.
More than half of the leaders surveyed reflected that making a professional mistake was one incident that could harm their business during the year. Additionally, 96 percent of survey respondents were not able to reach the 70 percent or higher threshold for a test that covered the basics of insurance. 82 percent of small business owners were reviewing their coverage in depth or conducting a thorough risk assessment.
Small Business Owners are Fine Combing Their Details:
The NEXT survey used artificial intelligence to provide a comprehensive snapshot of how much knowledge and preparation business owners had when it comes to assuring that they are properly covered. 51 percent of the respondents listed making a professional mistake or clerical error as a potential event that could negatively impact their business this year. Inflation was a primary concern for 68 percent surveyed, with a looming recession and supply chain issues following closely behind. Many consumers become meticulous about the services rendered when money gets tight, and this can lead to issues that require sufficient policy coverage.
The Vital Component That Tends to be Brushed Aside:
The findings of this survey showed just how consumed small business owners are with their day-to-day operations, and how the importance of being properly covered can easily be brushed off. 29 percent of respondents don’t have any coverage at all, and more than 50 percent conveyed that they don’t have adequate coverage to face potential risks. 18 percent of those surveyed claimed that they knew they could potentially not be covered up to speed, but still were not going to take any steps in the next six months to protect their business.
Insurance and Taxes Gaps Rank as Neck-and-Neck
Many small business owners struggle with the knowledge needed to fully understand the different needs of insurance coverage. Knowing what coverage and policies their business needs make for not knowing just how to proceed, and only one third of individuals in this situation seek professional help. Even though insurance coverage is so vital when legal issues and serious accidents arise, not even one of 500 respondents were able to nail down a perfect score on a quiz about general liability specifics. Many entrepreneurs have an excellent knack for running their business but are not quite in touch with the dire importance of their coverage needs.
Tailoring Your Coverage for Your Specific Needs:
This survey focused on various cities, rural areas, and suburbs, collecting opinions from entrepreneurs of all ages. This resulted in a portrayal that showed just how many types of needs the small businesses of today can have. 71 percent of rural business owners were concerned about inflation, and 41 percent of business owners over the age of 45 were concerned with the potential of a cyberattack. 35 percent of women who run their own businesses are likely to not have adequate insurance coverage, compared to just 25 percent of men. Since times continue to be stressful in general, having small business insurance is one way to free up time for the tasks that matter most, and know you are prepared for the worst while executing your best strategy.
Once your fantastic idea is in the so very exciting “true life” form, your storefront is open, and the customers are trickling in, there can be so much to take care of that it’s easy to put insurance needs on the back burner. Don’t let a single instant of bad judgement or accidental occurrence be the reason why you can’t generate positive revenue in the future! Contact us at the Alexander Insurance Agency of St. Charles today to put a plan in action that leaves you with no uncertainty or uncovered gaps while daring to dream every day.