Over the next two years, the number of small business owners in America could triple, as a growing number of Americans plan to leave the traditional workforce and begin working for themselves.
Working for yourself comes with a number of perks. The majority of small business owners say they make more money, have better health and increased work-life balance. However, without small business insurance, owners may not realize the everyday things that make them vulnerable.
This is potentially catastrophic, as unexpected incidents can slow growth for a business or worse, force them to close.
To get a better idea of the common risks small business owners face, FreshBooks conducted a new study based on responses from more than 1,100 small business owners in America.
Here’s what they found:
Less Than Half of Small Business Owners Are Confident Their Company is Properly Insured
63% of small business owners say they’re generally aware of the risks to their business, and 60% say they have business insurance, but less than half (49%) say they’re confident that they’re properly insured.
In fact, 41% believe their personal insurance is sufficient coverage — even for business claims. However, the reality is it may not be enough.
You May Be Exposed to Business Risks If You…
- Have a home office — 84%*
- Use a personal vehicle for work purposes — 64%
- Spend time on client premises — 53%
- Keep clients sensitive/personal information — 50%
- Have inventory/supplies — 37%
- Have work that is publicly associated with a clients business or brand — 36%
- Own specialized equipment — 29%
- Have dedicated office space — 22%
- Have employees on payroll — 20%
- Operate commercial vehicles — 7%
*Percent of small business owners affected
What’s the Real Cost of Coverage?
Over half of small business owners say they spend less than $1,000 annually on insurance, and just under a quarter say they spend more than $2,000 annually on insurance.
Small Business Owners Are At Risk Of Being Hacked
Business with fewer than 100 employees account for 71% of cyber attacks, yet 42% of small business owners admit they don’t know what cyber liability insurance is.