Common Small Business Insurance Claims and How Can You Avoid Them

small business insurance claims

As a small business owner, you have a lot on your plate. You are responsible for managing your employees, dealing with customers, and keeping your business running smoothly. Unfortunately, accidents and unexpected events can happen at any time, which is why it is essential to have insurance coverage. In this article, we will discuss some of the most common small business insurance claims and provide tips on how to avoid them.

What Are The Top Causes of Property and Liability Claims?

The two most common types of small business insurance claims are property and liability claims. Property claims typically involve damage to your business property, such as your building or equipment. Liability claims, on the other hand, involve injuries or damage to others that result from your business activities.

Here are six of the top causes of property and liability claims include:

  • Slip and falls: Slip and fall accidents are a common cause of liability claims for small businesses, especially for those in the retail and service industries.
  • Property damage: Property damage claims can result from a wide range of events, including fire, water damage, vandalism, and theft.
  • Product liability: If your business manufactures or sells products, you could be held liable for injuries or damages caused by those products.
  • Professional liability: Professional liability claims can result from errors or omissions in your professional services, such as providing incorrect advice or failing to meet contractual obligations.
  • Cyber liability: A cyber-liability claim can arise from unauthorized access to sensitive information, theft of customer data, or other types of cybercrimes.
  • Employee liability: Several situations, including harassment, discrimination, wrongful termination, or other types of employment-related disputes can lead to employee liability claims.

Why Are Costliest Business Insurance Claims Not the Most Common?

While high-value claims, such as those related to property damage or product liability, can be very costly, they are not necessarily the most common. In fact, smaller claims, such as slips and falls or minor property damage, are more likely to occur. These claims may not be as costly, but they can still have a significant impact on your business finances if you are not properly insured.

Commercial Liability Insurance: Your Best Protection

Commercial liability insurance is one of the best ways to protect your business from liability claims. This type of insurance provides coverage for third-party injuries or damages that result from your business activities. It can also cover legal fees and other expenses associated with a liability claim.

To ensure you have the right coverage, it is important to work with an experienced insurance agent who can help you assess your risks and recommend the right coverage options for your business. You may also want to consider other types of insurance coverage, such as property insurance or business interruption insurance, to further protect your business.

Consult Chambers & Company to Cover Your Small Business Against These Claims

If you are looking for reliable insurance coverage for your small business, Chambers & Company Insurance Brokers is here to help. Our team of experienced agents can help you assess your risks and recommend the right coverage options for your business. Contact us today to learn more.


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