There are many different misconceptions regarding common business claims and business insurance. One of the most common misconceptions of business insurance is that successful businesses do not require insurance. Whether a business is successful or not is irrelevant because disaster can strike at any given time, and your business could suffer a major loss. Business insurance is important for natural and man-made disasters and mishaps. Read on for more information about business insurance and common business claims.
6 Common Business Claims
As you may have guessed, theft is at the top of the list of common business claims. Burglary and theft account for more than 15 percent of small business claims. Recovering from theft and burglary is a costly business property and liability claim.
2. Wind and Hail Damage
Wind and hail damage often occur during severe weather, such as thunderstorms. Hail can destroy the roof of a business, windows and other exterior parts of a business. Hail can come in varying sizes and can cause severe amounts of damage. Wind can cause trees and tree limbs to crack and fall on a business and destroy the exterior to a point where the interior becomes an issue.
Fire is a lot more common than many business owners think. Some businesses are more susceptible to fires than others, but it does not mean it cannot or will not be an issue. Fire is responsible for 10 percent of business claims. Fires can occur for many different reasons, including incorrect use of hazardous materials, improper sprinkler system setup, and other instances. Fires can quickly destroy all, most or some of your business.
4. Slips and Falls
Like fires, slips and falls are responsible for 10 percent of business claims. Sure, wet floor and caution signs help customers, but they do not prevent a customer from slipping and falling in your establishment and injuring themselves. Slips and falls can occur for various reasons; sometimes there is not even any liquid on the floor to cause a slip. Some people trip or other factors take place that cause someone to slip in an establishment, which can result in a costly law suit.
5. Water and Freezing Damage
A lot of water and freezing damage frequently occurs during the cold months of the year. Many business owners do not think to check the pipes or take extra precautions to ensure the pipes do not freeze. As a result, the business may experience a loss because water must be present within the facility for employees to come to work, and busted pipes can cause flooding damage as well. Pipes can be frozen for days, weeks or in severe cases, months. Water and freezing damage accounts for more than 10 percent of business claims.
6. Reputation Harm
Reputation harm is not as common as other business claims, but it can be the most expensive. A business’s reputation is a major part of their success, and the primary reason they have a high number of clientele. Reputation harm or damage can cost a business at least $50,000 to repair. Although reputation harm accounts for less than 5 percent of business claims, they do happen, and can become disastrous if the business is not protected by a good insurance policy.
These six common business claims cannot always be prevented, so it is best to have a course of action in case mishaps and disasters occur. You invest thousands of dollars into a business and thousands more dollars to make it successful. Do not let your business and everything you have worked hard for go down the drain due to not having proper business insurance.
It is good to seek the advice of your agent should there be any questions or concerns. To learn more about Ramey King, what we do and how our services can be of benefit to you, give us a call today. You can reach a Ramey King Insurance agent at 800-453-9691, by emailing email@example.com or by filling out the quick and easy form on this page. We look forward to hearing from you!