Small business owners know the odds can be stacked against them. They have small profit margins and large risks, so they need the right insurance to manage their exposures without breaking the bank. This can be challenging, but the good news is that technology is making insurance more accessible for small businesses.
Beating the Odds
The numbers from the U.S. Bureau of Labor Statistics show that about 20% of small businesses fail in the first year, and only about half make it past five years.
Even in the best of times, small business owners can struggle to succeed – and times aren’t always ideal. Many things can go wrong. For example, what if a customer is injured on your property? What if someone claims an advertisement is defamatory? What if an employee damages someone’s property?
We live in a litigious society. If a small business is hit with a lawsuit, its odds of survival may go down. Even if the lawsuit doesn’t destroy the business, it will undoubtedly put additional strain on it – especially if the business owner doesn’t have the right insurance.
Insurance on Demand
Insurance is important, but small business owners don’t want to pay for coverage they don’t need. As a result, small business owners can end up walking a tightrope as they try to avoid having too much or too little coverage.
Traditional insurance coverage can make this balancing act especially difficult.
Because the needs of a small business can change rapidly, traditional insurance policies that use year-long coverage terms might not be very suitable. A new gig or client might bring new opportunities, but also new risks and insurance needs. The small business owner needs to adapt, and they need their insurance coverage to do the same.
This is where technology, and on-demand insurance, in particular, can help.
According to the NAIC, “Businesses in the on-demand insurance space are using cutting-edge innovations such as the internet of things (IoT), artificial intelligence (AI), predictive modeling and big data. These innovations are helping startups reinvent the way insurance products are created, underwritten, priced, and distributed.” The on-demand insurance market is expected to grow 30% by 2026.
The Insurance You Need, When You Need It
In the past, small business owners may have faced a dilemma: they could spend money on insurance coverage they didn’t need to ensure that their risks were covered, or they could skimp on insurance and hope nothing went wrong.
That’s no longer necessary.
With Thimble’s on-demand insurance, your business can secure customized insurance for one day or one year – whatever you need. General Liability insurance policies with limits of $1 million or $2 million can be purchased in seconds.
Heffernan is proud to have partnered with Thimble to provide small businesses with the coverage they need. Want to explore your options? Contact Heffernan Insurance Brokers today.