A recent survey by NEXT Insurance reveals that a staggering 96% of small business owners lack basic insurance knowledge, with nearly 30% carrying no insurance at all. This leaves many vulnerable to significant risks, as they navigate an increasingly volatile business environment.
Top Concerns for Small Businesses
Inflation remains the primary stressor, with 68% of owners citing it as a major concern. Other significant worries include reduced customer spending, supply chain issues, and labor shortages.
Inadequate Coverage and Growing Risks
Despite acknowledging risks like professional mistakes and cyberattacks, many business owners are underinsured. Only 10% have cyber liability coverage, and 29% of respondents don’t have any business insurance.
Moving Forward: Steps Toward Better Protection
Encouragingly, over 80% of small business owners plan to reassess their coverage in the coming months. However, only a third intend to seek professional help, which could be crucial in ensuring they are adequately protected against future risks.
Conclusion
The survey highlights a critical gap in insurance knowledge and coverage among small business owners, underlining the need for increased education and professional guidance in the industry.