Research offers insights into small business owners' insurance buying habits and risk exposures related to workers' compensation
WORCESTER, Mass., April 22, 2024 /PRNewswire/ -- With workers' compensation being a key component of every small business' insurance program, The Hanover Insurance Group, Inc. (NYSE: THG), a leading property and casualty insurance company, today released its 2024 Small Business Risk Report: A Focus on Workers' Compensation. The fifth edition of the report highlights how small business owners select their workers' compensation program, the value they place on risk management services and how a claim impacts how business owners view their workers' compensation programs.
The Hanover partnered with Statista, a leading data analytics firm, to survey 300 small business owners throughout the United States. The Hanover's 2024 report found 60% of small business owners who have not experienced a claim rank price as one of the two most important factors in their workers' compensation purchase, while only 40% of business owners who have had more than one claim rank price as one of the top two factors in their purchase decision. Furthermore, the more claims that a small business owner has experienced, the greater value they place on risk management and claim handling, with 45% of small business owners who experienced more than one claim rating risk management services as a top consideration.
Other highlights from the study include:
- Business owners take employee safety training seriously - 95% of business owners reported they regularly provide safety training for employees. Trainings for employees were ranked as the top service used as part of the business owner's insurance programs and the usage of these trainings was higher among business owners that had filed workers' compensation claim.
- Business owners need knowledgeable insurance resources – After facing a claim, small business owners become more focused on keeping their employees safe and preventing future claims, which is rated as a very important aspect of their workers' compensation program. For small business owners having encountered workers' compensation claims, their insurance priorities transition from price to safety, emphasizing risk management services and claims handling. More than two-thirds of small business owners report that they consider a recommendation from their insurance agent to be a very important factor when purchasing workers' compensation insurance. This presents agents with an opportunity to engage proactively with customers on value-driven considerations before claim occurrences.
- Businesses that have experienced a workers' compensation claim feel less secure - 70% of respondents of the survey who had not had a claim in the last five years rate their safety culture as "excellent," yet of the business owners that had experienced workers' compensation claims, less than half rated the safety culture within their company "excellent."
"With most business costs rising, small business owners continue to look for ways to reduce risk exposures," said Charles F. Hamann, president of small commercial at The Hanover. "The report data indicates small businesses value support from their independent agents. Additionally, the risk management services carriers offer today are critical to their success. While such services are ranked highly, there is an opportunity for agents and business owners to take a more proactive and holistic approach to worker safety."
The report also found the majority of small businesses (67%) faced a workers' compensation claim in the past five years. However, half of small business owners are "very confident" that their company is adequately insured. Business owners recognize proper protection and being prepared for the unexpected is critical to their success, creating opportunities for independent agents to discuss emerging risks and value add risk management services. The Hanover partners with independent agents to deliver enhanced workers compensation services including nurse triage programs with 24/7 care, ergonomics toolkits, and return-to-work support. Such programs may significantly reduce the impact of workers' compensation claims.
To view the results of The Hanover's 2024 Small Business Risk Report: A Focus on Workers' Compensation, please click here. For more information about The Hanover's commercial lines insurance solutions, please visit https://www.hanover.com/agents/agent-solutions/commercial-lines.
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, The Hanover offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.
View original content to download multimedia:https://www.prnewswire.com/news-releases/the-hanover-reveals-results-of-its-2024-small-business-risk-report-a-focus-on-workers-compensation-302122384.html
SOURCE The Hanover Insurance Group, Inc.
