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The Small Business Insurance Landscape is Changing: Here's why you should assess if you have the right business insurance for the year ahead

Parth Shukla, Group Manager, Insurance at Intuit QuickBooks

Parth Shukla, Group Manager, Insurance at Intuit QuickBooks

The small business ecosystem has evolved in a number of ways since the onset of the pandemic. From businesses looking to accelerate their new or existing digitization efforts, stepping into the ecommerce space for the first time, or overhauling business models entirely, many business owners were forced to be flexible in order to remain resilient.

The ripple effect of this evolution has been felt in other industries that support the small business ecosystem. For example, the small business insurance space is discovering that the old ways of operating are no longer suited to the new breed of small businesses. Similar to ecommerce, where some business owners felt that it was a “nice to have” not a “must have”,  now realize business insurance is a must. Meanwhile, business owners are reevaluating their coverage, to ensure they have the proper insurance in place. 

Recently, we celebrated National Insurance Awareness Day, Which took place on June 28 and aims to serve as a reminder to small business owners to review their insurance policies. Here are three reasons why business owners should take the extra step to ensure they are properly covered for the year ahead given the tumultuous times we’re living in.

The Pandemic Exposed Vulnerabilities 

Many small businesses have insufficient coverage in key areas, leaving them vulnerable when the unexpected happens. This was evident at the onset of the pandemic. In a recent survey* conducted by Intuit QuickBooks, only 17% of small businesses surveyed had business insurance, while 23% were not even familiar with business insurance. While business insurance may not seem like an obvious necessity, there are potentially catastrophic consequences of not having any coverage – or not having the appropriate coverage. Unexpected incidents such as a lawsuit, natural disaster, cyber attack, or business interruption can slow growth for a business or worse, force them to close.

The Insurance Landscape is Changing

According to Intuit QuickBooks, more than 50% of businesses surveyed have reevaluated their business insurance needs due to COVID-19. As we enter this new digital-centric, post-pandemic world, it is important for owners to understand how quickly and easily they can become insured - and make sure they have the latest offerings - to ensure their business is set up for success and prepared for problems in the modern world. For example, as ecommerce expanded and businesses went digital, some owners found themselves at increased risk for technology exposures. From general liability and business interruption insurance to workers’ compensation and cyber insurance, understanding the various types of insurance coverage to keep up with the changing landscape will be crucial to small business success moving forward. 

Small Businesses have More Options - As Some Insurance Providers are Pivoting, and Even Entering the Space  

While small businesses were one of the hardest hit sectors of the pandemic, insurance firms have been hit with their own changes and challenges, too, impacting everything from coverage options to the claims payout process. Many firms have taken steps to address their outdated model to meet changing business and consumer needs. If business owners have found that their insurance provider hasn’t taken the steps to evolve their operations, this is an opportunity to change the way they approach insurance coverage as they seek a digital, more user-friendly buying experience. Unlike the traditional process that is complex, needs several days, and requires small business owners to fill out several forms to get a quote or initiate a purchase process, take this time to look for more convenient ways to become insured, such as QuickBooks Insurance.

As business owners plan for the difficult road ahead and the new reality that awaits, it’s crucial to understand insurance coverage and make note of when to notify insurance providers of potential claims. Plan for the future to navigate the present with confidence.

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