Do you know what the most common property and liability claims faced by your small business clients are? As a Professional Liability Insurance Agent, it’s important to be aware of what the top liability claims are, as well as their costs. For example, according to an analysis of The Hartford’s small business claims, 4 out of 10 small businesses are likely to experience a property or general liability claim within the next 10 years.
While the most common claims are burglary and theft, the costliest type of claim is reputational harm. This includes libel, slander, violation of privacy and other liability claims. What does a claim payout on a reputational harm cost? If a lawsuit is involved, it can run much higher than most small business owners realize; averaging over $75,000 per case in order to defend and settle. According to The Hartford’s claim analysis, 35% of all liability claims result in a lawsuit.
How can your small business clients prevent claims of reputational harm? While there is no 100% fool-proof method, the following tips may help reduce their risks.
- Ensure the business has permissions to post photos or content to their website to avoid copyright infringement.
- Avoid criticizing a competitor publicly online or to customers.
- Conduct background checks on any and all employees, especially those who will have access to sensitive online company data.
At PLRisk Advisors, we understand the significant risks faced by small business owners. With our comprehensive Professional Liability Coverage, Employment Practices Liability Insurance, and more, we provide coverage for all classes of business, including hard-to-place risks. Please contact us today to learn more at (855) 403-5982.
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