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The 5 most common small business insurance claims

 February 28, 2020     UFG Insurance    Business 

We buy insurance for peace of mind.

We insure what matters most, like our small businesses, because we want protection in case something goes wrong. 

Although you’d hope to never need to file an insurance claim on your small business, it’s more common than you may think. In 2015, survey data predicted that 40% of small businesses would make a business insurance claim in the next 10 years. This begs the question: have you taken steps to prevent against a fire or water damage? Today we’re looking at five of the most common small business insurance claims.

1. Fire damage 

Although it tends to be less common than natural disasters, fire damage can be very costly for business owners. Whether the cause be climate, equipment malfunctions or simple user error, fires can occur at any time. Even if your business is protected, you will most likely still lose some irreplaceable items in the process. 

Tip: Smoke detectors and multi-purpose dry chemical fire extinguishers are must-haves on every floor of your business. 

2. Customer injuries

 The most avoidable claim every business should strive to prevent is customer injury. Common slips and falls or incidents can be avoided by cleaning and maintenance upkeep. These claims can quickly become the most expensive based on the severity of the injury. 

Tip: Develop a daily process for regularly cleaning and sweeping any area a customer may use to help prevent potential injury.

3. Wind damage

A tornado does not need to occur for a small business to endure substantial damages. High wind speeds have the ability to pull apart roof tops and even siding. With the addition of hail and rain, exterior damages could add up to break the bank. 

Tip: Make sure items like HVAC units, pipes, skylights and other external components are tightly secured so they won’t be swept away in a windstorm.

4. Water damage

Regardless of geographic location, water damage always has the potential to occur whether you live in warm or cold areas. From Mother Nature’s drawn-out rain showers to a burst pipe in cold temps, water damage not only adds up quickly but can take a while to repair which may impact business. 

Tip: Especially for those of you who experience extremely cold winters, make sure you insulate your exposed piping because they are vulnerable to freeze overnight. 

5. Theft

The most common small business claim by far is theft. Although very unfortunate, theft tends to be the least expensive. Do your best to avoid theft by routinely updating your business security and have proper opening and closing processes in place.

Tip: A security system is a must for every business owner. It doesn’t need to have all the bells and whistles, but make sure you have a system that is consistent and reliable. 

Hopefully this list of common small business insurance claims serves as a reminder to consider precautions and safety nets (literally, and maybe figuratively?) in case any of these unfortunate events come to fruition. The best practice is always prevention whenever possible.

If you have questions on coverage or have a claim you need to file with UFG Insurance, please visit our claims page or contact us.

The information provided is for informational purposes only. Every attempt is made to ensure that the information is accurate; however, it is not intended to replace professional advice. For more information, see Disclaimers & Other Legal Documents.