3 Business Insurance Trends To Keep an Eye on in 2023
Looking back at 2022, it was a tough year for businesses. It was marked by ongoing effects from the pandemic, high inflation, armed conflict in Eastern Europe, and other difficulties in the U.S. and around the world.
As we move deeper into Q1 2023, it’s shaping up to be another tumultuous year, with many of the same forces in play. Consequently, business owners and operators should be looking for and prepared to address what are likely to be many challenges.
Why Business Insurance Is Essential
A critical form of financial protection is having adequate small business insurance. Without proper coverage, a seemingly benign event like someone suffering a minor injury from a fall at your place of business can turn into a large out-of-pocket expense when they sue you. And that’s just one example of the kinds of liabilities and losses that can strike without warning.
Every company—large and small—faces business risks. The good news is that business insurance exists to address those risks. And since there are different coverages for different scenarios, you can purchase the policies you need and disregard those you don’t.
For example, if your company owns or leases vehicles for business purposes like deliveries, you’ll need a commercial auto policy. But if you don’t have vehicles, that coverage is unnecessary. Similarly, if you don’t provide professional advice or services, you probably don’t need professional liability coverage.
But virtually every company needs some form of business coverage, which prompts many to wonder about insurance industry trends for the year ahead. Three of the more notable are described below.
1. Obtaining Small Business Insurance Will Be Even Easier in 2023
A trend in recent years that will continue in 2023 is the transition of insurance transactions from in-person to online.
Insurers increasingly understand that business owners and decision-makers have little time for visits to a physical office. That’s why those companies are continually striving to make it easier for companies to get instant quotes, buy coverage, report claims, and manage their policies online. Those capabilities aren’t necessarily new, but the systems and processes that support them are getting better all the time.
Online access to an insurance company’s offerings is convenient for busy professionals. You can go online whenever you have a little downtime—before the business day starts, in the evening, etc.—and do your research. This includes learning about commonly needed coverages like workers’ compensation, general liability, professional liability, commercial auto, cyber, and umbrella insurance.
If you decide to buy policies, you can also do that online, with coverage typically active in the next day or two. Later, if an incident occurs, you can report claims on your insurance company’s website, as well. And if you need to review information on your policies, update your company’s profile, etc., you can also do that online.
2. Business Owners Will Pay Less for Insurance in 2023 With the Right Insurance Company
Another business insurance trend for 2023 is that companies will continue to learn about the savings available through online providers of small business coverage. Insurers are increasingly adopting a direct-to-you business model that eliminates brokers (whose “cut” of the transaction has historically raised the sales price) and enables savings of as much as 20% compared to other insurance companies.
Forward-thinking companies are then using those savings for everything from more marketing initiatives to increased research and development to grow their businesses. Or they can simply let those savings go directly to their bottom line.
3. There Will Be Clearer Distinctions Between Insurance Providers
The challenging business climate in recent years has benefitted business owners in one unexpected way: It has demonstrated the importance of leading insurers’ experience, financial resources, excellent customer service, etc. Newer insurance companies that don’t have those attributes have been exposed by the difficult economic climate, making it easier for insurance shoppers to spot them.
Small Business Insurance: Still Absolutely Essential in 2023
Sadly, one significant incident that’s not covered by insurance can create a huge financial burden for a small business. And, too often, that debt forces the company to close its doors.
Yours doesn’t have to suffer that fate. All it takes to avoid financial difficulties is buying and maintaining adequate insurance coverage. Take action to protect your business and employees today!
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