The most common claim for small businesses is burglary & theft. It is also the least expensive in Hartford’s ranking of the 10 costliest claims. While 20% of business owners were impacted by theft and burglary in the past 5 years, the average cost was about $8000. Compare that to the costliest claim which is reputational harm. Though less than 5% of small businesses file claims for reputational harm, payouts average around $50,000 and can run much higher if a lawsuit is involved.
Here is a breakdown of the top 10 property and liability claims for small businesses, indicating the percentage of claims and the average cost.
Type of Loss Percentage of Claims Average Cost
Burglary & Theft 20% $8000
Water & Freezing Damage 15% $17,000
Wind & Hail Damage 15% $26,000
Fire 10% $35,000
Struck by Object 5% $10,000
Customer Slip & Fall 5% $30,000
Customer Injury & Damage 5% $30,000
Product Liability 5% $35,000
Vehicle Accident 5% $45,000
Reputational Harm 5% $50,000
Berkely Brokerage Corp. will take the time to learn about your small business and the risks and liabilities that you need to be insured against. We understand that every business if different. We can help tailor your insurance policies to the specific needs of your company. Give us a call today.