Most small business owners have seen revenues increase over the last two years, but 77% remain underinsured, according to a report from Hiscox.
While three out of five small business owners recorded revenue growth, most owners lack adequate insurance coverage across several different policy types. While 65% carry general liability coverage, just 49% have property insurance, and 42% have professional liability insurance.
A lack of insurance knowledge is likely leaving business owners exposed. Among those surveyed, 83% could not correctly describe what professional liability insurance covers. Nearly three in four (74%) said they thought general liability coverage would cover property damage in case of a fire or a flood. Both situations are usually excluded from general liability policies.
“Business insurance is still chronically misunderstood, with most business owners expecting a policy to cover scenarios it isn’t designed for,” said Mary Boyd, CEO of Hiscox USA, in a statement. “As an industry, we must continue to help business owners understand the differences between policies, omit alienating jargon and encourage them to let us know when their business has changed.”
The slideshow above highlights the best insurers for small businesses in 2025, according to Forbes Advisor.
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