Nearly one in four small business owners admit they’re likely to go out of business if someone makes a liability claim against them, according to research conducted by QBE Insurance1.
The research also found that:
- 30.4% said they'd lose revenue
- 28.6% said they'd lose clients
- One in five said their cash flow would dry up
Our survey also shows the industry can do more to educate small business owners about their liabilities.
Insurance businesses and brokers alike are ideally the first point of contact for advice about insurance. Unfortunately, that’s not always the case.
More than half (51.6%) of the business owners we surveyed report they turn to their accountant or financial advisor first for advice about insurance, while 40.2% look for information themselves, mostly online.
Almost a quarter (23.8%) of business owners say they ask their family and friends, and only 14.6% initiate the conversation with their insurance broker.
How to use this report
The report brings together the results of our SME survey with analysis of four years of QBE liability claims data. The customer survey highlights SME sentiments around liability concerns, while our own claims data presents the unambiguous reality of the most common claims.
Inside the pages of this report you’ll meet some of the small businesses who are protected by QBE policies and I’m sure you’ll read their inspiring stories with interest.
SMEs and Insurance: A pulse check on risk trends for businesses makes a compelling case for keeping business insurance up to date and can be of use to insurance brokers and business owners for starting open and frank conversations about having the right cover.
Contact your Business Relationship manager for more information about QBE Business Packages.
1Pure Profile research study of 609 Australian SMEs completed for QBE insurance during April 2019.