According to the Hannover newspaper, small business owners' priorities have shifted from price to risk management after workers' compensation claims.
Hanover Insurance Group research shows that experiencing a workers' compensation insurance claim has a significant impact on small business owners' confidence in their insurance program, shifting their focus from price to safety and risk management.
The study found that small businesses that have not filed claims consider price a top consideration when purchasing workers' compensation insurance. However, for businesses with at least one insurance claim, the focus shifts to risk management services and claims processing. Specifically, 60% of small business owners do not set claim rank price as an important factor, while only 40% of small business owners with multiple claims do the same. is.
Interestingly, the more claims a small business owner has experienced, the higher the value they place on risk management and claims. Among businesses that have received an insurance claim, 45% cite risk management services as one of their top two considerations.
The survey also highlighted the role of insurance agents, with more than two-thirds of small business owners believing that an insurance agent's recommendation is an important factor when purchasing workers' compensation insurance. This suggests a clear opportunity for agents to discuss value beyond price with customers, especially before a claim arises.
Although 94% of small business owners believe their company has a strong safety culture and 89% are confident in the proactive measures they take to keep employees safe, survey data shows that It shows the lack of a comprehensive approach to countermeasures. This suggests that small business owners need additional risk mitigation resources beyond regular training. Hanover cites workplace hazard assessments, business continuity planning, nurse triage, his services, and telematics-based driver safety monitoring as additional options.
Once a complaint occurs, confidence in a company's safety culture decreases significantly. He found that 70% of small business owners rate their company's safety culture as “excellent” even if they have never experienced a complaint, but they rate the safety culture of their company as “excellent” even if they have never experienced a complaint. Only 48% rate him highly.
The study found that when small businesses face claims, their priorities shift and they adopt a more expansive and holistic approach to risk management. For example, among small business owners who filed for workers' compensation, 68% conducted regular inspections and safety audits, 65% implemented health promotion programs, and 51% used nurse triage services.
Overall, 88% of respondents said they were confident they had adequate insurance, but small business owners are concerned about the potential for impacting their workers' compensation insurance program in the future. There are many factors that lead us to expect this to be the case. These include insurance premiums, the economic downturn, technological advances, and mental health and stress-related claims.
Read the full survey results on The Hanover's website. &
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