It was estimated in 2016 that there were approximately 6,977 insurance companies in the United States; the total insurance claims by businesses in the US every year amounts to millions of dollars. If you are a business, then you should be insured against any claims or damages – not doing so, leaves you a sitting duck and at risk of losing everything you have worked for.
So what are the most common insurance claims for a business? Find out with outline of each, so that you know what you will need to claim for in the event of damage. The following statistics regarding the most common insurance claims for businesses come from The Hartford:
- Burglary and Theft – Not surprisingly, burglary and theft accounts for the most common insurance claims for a business – as much as 20%. This pertains to burglary and theft committed by any third-parties, but will also pertain to those within your company.
- Water and Freezing Damage – Water and Freezing damage accounts for as much as 15% of insurance claims, Claims that fall under water and freezing will include water leaks and damaged caused by ice.
- Wind And Hail Damage – Wind and Hail Damage is common in the United States, and it’s estimated to account for as much as 15% of overall business insurance claims.
- Fire Damage – Fire damage seems like something that will never happen to you – until it does. As much as 10% of total insurance claims every year are for fire damage, and fire can sweep through your business in a heartbeat.
- Customer Injuries Due To Falls – If you own a business that has plenty of customer traffic, then you can expect to experience a slip-and-fall damages claim at some or other point if a customer should fall on your premises and injure themselves. Again, it’s more common than you think – and up to 10% of insurance claims are of this variety.
- Customer Injuries and Damages – Slips and falls are the most common form of customer injuries; any other bodily injury or property damage would fall under customer injury and damage claims – which account for 5% of less of insurance claims every year.
- Vehicle Accident Claims – Vehicle accident claims account for less than 5% of yearly insurance claims by businesses in the US: These include auto accident claims that are related to vehicles driven by employees of the business – and will also cover claims against your company or employees for damages caused to another parties.
- Product Liability Claims – Product Liability claims are not as common – again, they account for less than 5% of total insurance claims every year. But that doesn’t mean they won’t happen. They are on the rise in the retail industry, and any damages that arises from the use of a product your company produces could be covered under this form of policy.
- Injury-by-Object – Injury by Object claims are not as common, and often much less than 5% of claims: These fall under any objects that can or have caused bodily injury – including vehicles and falling construction debris that injures a passerby.
- Reputational Damage – Reputational damage claims are not very common, but they do happen in the world of business – and reputational damage can stick around for years if it’s not dealt with quickly. Libel, slander and defamation would all fall under Reputational Damage claims, which account for less than 5% of total claims.
Ethan’s Last Word
Once you become aware of the some of the most common commercial insurance claims, you can do some risk planning to reduce your business’ exposure to them.