WORCESTER, Mass., June 4, 2020 /PRNewswire/ -- A new study released today found that despite the increase in direct insurance writers, small business owners are reporting that independent insurance agents are more important than ever in helping them assess their insurance needs. The 2020 Small Business Risk Report, conducted by Forbes Insights, the strategic research and thought leadership practice of Forbes, and The Hanover Insurance Group, Inc. (NYSE: THG), a leading property and casualty insurance company, surveyed small business owners to garner their perspectives around insurance exposures and future vulnerabilities.
The 2020 Small Business Risk Report concluded that only two percent of respondents are buying their insurance online. 72% of small business owners reported that the advice of an independent agent is critical to their insurance decisions. In fact, more business owners agree that they are leveraging recommendations about insurance coverage from outside experts, up 12 percentage points at 64% from the company's 2018 survey. However, digital servicing tools are important to business owners, with the top three most important capabilities they are looking to conduct online being: viewing and paying bills, requesting certificates of insurance, and viewing and downloading policy documents.
Other key highlights from the study include:
- While small business owners responded that they are looking for less complexity, at least 46% of business owners surveyed have purchased insurance policies for all their business needs from two or more carriers. Yet, 71% say it's very or extremely important to have most of their insurance needs covered by one carrier, not multiple
- Small business owners realize it's not just large businesses that are vulnerable to workplace discrimination lawsuits—22% say they're vulnerable
- Only 38% of small business owners say they are extremely confident that they're adequately insured against allegations of workplace discrimination, wrongful discharge or harassment
- 79% say proper coverage is more important than price when buying insurance
- 76% place a significant amount of trust in the reputation of the insurance company
"As the world experiences a year of unprecedented change, it's more important than ever that we understand the complexities of small business owners and invest in the tools and products that will help our agents best serve their customers," said Michael R. Keane, president of core commercial at The Hanover. "Our annual Small Business Risk Report further validates the importance of working with independent agents to secure the best combination of coverage for business owners to protect their assets, especially during these challenging times. And we are committed to continuing to invest in our small commercial offering to help provide that for our agents."
To view the results of the 2020 Small Business Risk Report, please visit https://www.hanover.com/2020-small-business-risk-report/. For more information about The Hanover's small commercial insurance products and services, please visit hanover.com.
About Forbes Insights
Forbes Insights is the strategic research and thought leadership practice of Forbes, a global media leader that champions success by celebrating those who have made it, and those who aspire to make it. By leveraging proprietary databases of senior-level executives in the Forbes community, Forbes Insights conducts research on a wide range of topics to position brands as thought leaders and drive stakeholder engagement. Research findings are delivered through a variety of digital, print and live executions, and amplified across Forbes' social and media platforms.
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agents, The Hanover offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.
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SOURCE The Hanover Insurance Group, Inc.