The 10 Most Common Small Business Insurance Claims


Being the proprietor of a small business can be very rewarding, but it’s no secret that this position also comes with a wide variety of challenges. Along with working hard to maintain the business’ attraction to the public, customer service standards and general value, various unforeseen circumstances like fires, burglaries, water damage and more can heap a lot of extra stress on owners. Getting properly insured can help alleviate this, but to better understand what you’re up against keep reading below to become familiar with what kind of insurance hazards business owners can find themselves up against. According to, these are the 10 most common small business insurance claims filed:

1. Theft and Burglary

Burglary and theft claims account for about 20 percent of those filed annually by small businesses. These claims may include not only lost products and merchandise but also damage caused by a break in.

2. Water Damage

Nobody wants a flood, pipe breakage or rain intrusion to interrupt their business, but unfortunately it does happen and the damage can be long lasting. Interestingly enough, water damage claims may also include damage caused by ice and freezing temperatures. About 15 percent of annual small business claims are for water damage.

3. Wind and Hail Damage

Mother nature does not discriminate when it comes to who the elements affect, and small businesses are no exception. Like water damage, wind and hail damage claims account for about 15 percent of small business claims each year.

4. Fire Damage

A fire is one of the most feared situations by business proprietors, and perhaps with good reason. Not only can fires completely devastate a building and therefore a business, but they account for about 10 percent of annual small business claims.

5. Customer Slips / Falls

Nobody wants someone to become injured on their property, but it does happen, and that’s why insurance is so important. A surprising 10 percent of annual insurance claims filed by small businesses involve a customer slipping and falling on their premises.

6. Customer Injury

Going along with the above, customers can become injured in a variety of other ways as well, many times unforeseen. About 5 percent of annual claims are for a customer becoming injured or experiencing damage on a business owner’s property.

7. Struck By An Object

This is exactly what it sounds like. Whether it’s an employee or a customer who is unwittingly struck by a stray object, having insurance will help greatly with the less than 5 percent of these claims filed each year.

8. Product Liability

Sometimes products don’t function as they should, and people do file suit as a result. Less than 5 percent of annual claims are for product liability.

9. Reputational Injury / Harm

When running a small business, reputation is everything. Even if it’s someone else saying that you damaged theirs, protect yourself from feeling the blow with insurance. These claims are less than 5 percent of those filed annually.

10. Vehicle Accident

Transportation is vital for many businesses, and less than 5 percent of small business claims each year involve a vehicular accident. Get insurance to prevent a traffic accident from ruining your business.