Are You Covered for These Top Business Claims?

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When it comes to business insurance, you might be surprised to discover the most common types of claims and perhaps more important—the most costly types of claims.
The Hartford Insurance Company conducted an analysis that can provide a glimpse into what types of claims you, as a business owner, are most likely to have to file and how costly these liabilities can be. Which ones surprise you the most?
 
The Most Common Types of Claims:
 
1. Burglary and theft 20 percent
2. Water and freezing damage 15 percent
3. Wind and hail damage 15 percent
4. Fire 10 percent
5. Customer slips and falls 10 percent
6. Customer injury and damage  Less than 5 percent
7. Product liability  Less than 5 percent
8. Struck by an object  Less than 5 percent
9. Reputational harm Less than 5 percent
10. Vehicular accident Less than 5 percent
 
The Most Costly of the Above Claims:
 
1. Reputational harm $50,000
2. Vehicular accident $45,000
3. Fire:  $35,000
4. Product liability$35,000
5. Customer injury or damage $30,000
6. Wind and hail damage  $26,000
7. Customer slips and falls  $20,000
8. Struck by an object  $10,000
9. Water and freezing damage $17,000
10. Burglary and theft  $8,000
 
Many business owners are surprised by some of the claims on these lists, mainly because they are not aware of the issues and scenarios they cover.
 
Take vehicular accidents, for example—the second most costly claim on the list. As Paul  & Dixon’s Risk Advisor Craig Correia explains, your business does not even need to own a vehicle to be exposed to this liability! In fact, you can be held liable for injury and/or damage if one of your employees has an accident while driving their own vehicle for business.  
 
Another common claim is for slips and falls, especially here in the Northeast, with the perils of snow and ice.  
 
It is probably not uncommon for customers wearing wet shoes to come into your store or business establishment, setting up a possible slip or fall scenario. True, they might not file a lawsuit if this should happen, but wouldn’t you want to make sure they are okay and offer to pay their medical expenses if they took a bad fall? Do you know if that would cover by your current policy? 
 
Clearly, the more you know about the issues surrounding risks, liabilities, and associated claims, the better you can protect your business.  
 
Paul & Dixon is here to help! Contact us with your questions or call to schedule a no-cost, no-obligation appointment with Craig.  
 

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