Credit: Chaay_tee/Adobe Stock
Business owners lack confidence in their insurance coverage and would drop their coverage if they needed to cut expenses, according to a new survey from Lance Surety Bonds.
The survey found that 55% of business owners have skipped insurance because it was too expensive. More than one in two (51%) would reduce or drop insurance entirely if their budget got too tight. Fully one in 10 said they believe their entire insurance spend is a waste.
A little under half of business owners (45%) said they’re “somewhat confident” in their insurance. That number drops among solopreneurs: 33% said they’re not confident in their insurance.
The low confidence might stem from a lack of knowledge about their business insurance coverage. Of the business owners surveyed, 39% said they have a business insurance policy they don’t fully understand. And 15% of respondents said they were “not sure” why they even purchased insurance.
Expenses and the economy are also weighing on business owners right now. Most of the owners (58%) cited an economic downturn as the biggest threat to their business right now. Business owners reported spending an average of $1,355 on business insurance annually, and 17% said their premiums have increased in the last year, with an average increase of $499.
Most business owners (76%) haven’t considered options outside of standard insurance, and about half (55%) said they’re unfamiliar with bonding or other insurance alternatives.
Photo credit: Chaay_tee/Adobe Stock
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