USA - 44% of Small Businesses Never Had Insurance
Tuesday, 06 09 2020, Category: Insurance and Reinsurance, Country: United States
There are almost 30 million small businesses (SMBs) in the US today, accounting for 99.7% of all businesses. According to the applicants we surveyed, 74% are sole proprietors, or self-employed. So why are so many of them running their daily business completely uninsured?
We know the answer, as we struggled to get insurance for our last business: availability. Before we founded Next Insurance, we tried to purchase the right insurance policy for our last company – and just couldn’t find what we needed online. We knew there had to be an easier way for small businesses to get the comprehensive, affordable coverage they needed, and we started Next to enable small businesses to quickly obtain tailored, affordable insurance policies entirely online.
44% is a staggering number of businesses who have been operating for at least a year to have never had insurance, but we aren’t surprised. The current insurance landscape doesn’t exactly offer policies that are accessible, tailored for different classes of business or easy to maintain or cancel. Insurance agents still dominate the process, acting as the middleman between insurers and their customers and often selling insurance policies that are wholly irrelevant to their client’s nuanced needs. They are also generally overpriced and can contain exclusions that render the policies they are selling effectively useless.