Traditional workers' compensation claims can present an opportunity for agencies serving small business clients.
Hanover's 2024 Small Business Risk Report: Focus on Workers' Compensation, which surveyed 300 small business owners, found that small business owners' experience with workers' compensation claims We found that this can impact trust in services and insurance programs. Workplace safety measures in place.
When small business owners experience insurance claims, their insurance priorities shift from price to safety. Almost 60% of small business owners have never experienced claim rank price as one of the two most important factors when purchasing workers' compensation coverage, whereas Only 40% of business owners have experienced it as one of the factors. Top two factors in purchasing decisions.
The more claims a small business owner has experienced, the more important they will place emphasis on risk management and claims. Approximately 45% of small business owners who have experienced multiple insurance claims rated risk management services as one of their top two considerations.
More than two-thirds of small business owners believe that an insurance agent's recommendation is a very important factor when purchasing workers' compensation coverage. Agents can use their experience and insight to educate customers about the importance of service and claims processing as key components of workers' compensation programs.
workers compensation opportunities
“As the cost of doing most businesses continues to rise, small business owners continue to look for ways to reduce their risk exposure,” said Charles F. Herman, President of Small Commercial at The Hanover.
Among small business owners who have never filed a workers' compensation claim in the past, only 63% are very confident in their current precautions to prevent workplace injuries and provides educational opportunities. Also, only 45% of people completely agree that they spend enough time considering their insurance options.
“The report's data shows that small and medium-sized businesses value support from independent agents. Additionally, the risk management services that carriers currently offer are critical to carrier success. It’s important,” Hamann said. “While these services rank highly, there is an opportunity for agencies and business owners to take a more proactive and holistic approach to worker safety.”
Approximately 67% of small business owners have filed at least one workers' compensation claim in the past five years. Once a complaint occurs, confidence in a company's safety culture decreases significantly. 70% of people who have never experienced a workers' compensation claim rate their safety culture as “excellent,” compared to 70% who rate it as “excellent” once faced with a claim. He is only 48%.
For example, only 21% of small business owners use nurse triage services before incurring a claim. This is an opportunity for agents to educate customers about the value of proactive safety services. The number of small business owners who use such services jumps to 51% when experiencing multiple claims.
While most small businesses offer safety training, there are real opportunities to enhance safety with additional services. Companies do not consistently utilize workplace hazard assessments (63%), business continuity planning resources (38%), telematics, or driver safety monitoring (33%).
Additionally, small business owners without insurance claims conduct fewer regular inspections and safety audits (51%) than those with insurance claims (68%). Fewer owners who have not made a claim (53%) are taking advantage of a health and wellness program than owners who have made a claim (65%).
The majority of small business owners (87%) reported at least one move in the past 12 months, and 68% reported hiring a new employee. In addition to hiring and training new employees, 34% of small business owners said they had experienced a pay change in the past 12 months. Owners often provide these updates to insurance agents, giving them the opportunity to deliver more value through convenient pay-as-you-go services for workers' compensation.
Additionally, while 88% of respondents believe they are adequately insured, small business owners are more concerned about insurance premiums (56%), the economic downturn (39%), and technological advances. We anticipate a number of factors that may impact workers' compensation insurance programs, such as (37%), mental health and stress-related claims (36%).
The report shows that by proactively consulting, agents can provide guidance and valuable insights to identify potential risks and help small and medium-sized businesses make the most of risk management services to stay ahead of risks. We conclude that it is possible.
topic
Commercial Line Workers' Compensation Business Insurance
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