New survey finds that 40% of small business
owners surveyed don't have insurance, putting themselves at
risk
TORONTO, Oct. 28,
2024 /CNW/ - Small businesses are the backbone of the
Canadian economy, with 98 per cent of businesses being classified
as small businesses. Despite this critical role, many are exposing
themselves to unnecessary risks. A recent TD Insurance survey
conducted by Maru Public Opinion uncovered that while nearly one in
five small business owners say their biggest liability is having
their business interrupted, almost 40 per cent of them do not have
business insurance - a key tool in keeping their business operating
and protected against financial loss should the unexpected
happen.
The survey also revealed a potential knowledge gap among
business owners when it comes to the importance of business
insurance: While many disclosed real concerns around liabilities to
their business, of those small businesses who do not have
insurance, almost 40 percent said they don't think they need it and
30 percent said it's not worth having since they don't have any
employees - undervaluing the importance of insurance as a
protection against those liabilities.
Top liability concerns among small businesses surveyed
include:
- Business interruption (19%) – could include a fire at a
restaurant leading to a suspension of business;
- Damage to property and contents (10%) - particularly among
Prairie businesses (18%) – could include a flood in a basement home
office or car collision from a florist on a delivery; and,
- Employee safety (7%) – could include a contractor employee
injury on the jobsite.
"With over 2 million small businesses in Canada ranging in size, profits and industry,
there is no one size fits all approach to business insurance," said
Tang Trang, Vice President, Product and Pricing, Small Business
Insurance, TD Insurance. "The unthinkable can happen and no
business wants to close their doors to their customers. It's
essential business owners find the right insurance policy that
meets their unique needs and gets them back to serving their
customers as quickly as possible."
Further, with costs of doing business continuing to rise, it's
not surprising that 36 percent of small businesses surveyed
mentioned cost as a reason for not having insurance. "It can be
tempting to forego insurance to cope with economic pressures, but
for a small grocery store whose customer slips and falls on its
property or a bakery who has to shut down due to significant
fire damage, the financial loss could greatly outweigh the cost of
protecting your business from the unexpected," added Trang.
As the economic landscape continues to evolve, so do the needs
of business owners. From moving to a new retail location, buying
new equipment, or launching a new service offering, it is important
business owners review their insurance policy regularly and speak
with a licenced insurance advisor if they have questions. While
it's encouraging that 60 per cent of small businesses surveyed have
consulted with a licensed insurance advisor about their business,
there remains 21 per cent who have no intention of doing so, and
only 32 per cent who review their existing policy regularly. In
addition to seeking advice from a licensed insurance advisor,
businesses also want a digital experience: two-thirds (67%) of
high revenue and over half of mid-revenue producing businesses
(57%) would be more inclined to pick an insurance provider that
offers digital capabilities.
Meeting this digital demand, TD Insurance offers a Digital
Quoter tool that provides easy, online access to customized
quotes for business owners, allowing them to better understand
their insurance needs in just a few clicks.
In addition to proactively understanding the insurance needs of
your business, there are a number of ways businesses can prevent
having to temporarily close their doors. "Establishing safety and
emergency protocols and training employees on them regularly,
conducting safety inspections and addressing any issues identified,
and installing anti-theft devices for their vehicle, are just a few
steps small businesses can take to protect what they've worked so
hard to build. When all else fails, whether you're a solo
accountant, own your own law firm, are a contractor or a
professional photographer, having the right insurance in place
could help safeguard your business and let you focus on what you do
best," added Trang.
To learn more about the different insurance policies available
to small business owners, visit the TD Insurance for
Business website.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively
known as TD Bank Group ("TD" or the "Bank"). TD is the sixth
largest bank in North America by
assets and serves over 27.5 million customers in four key
businesses operating in a number of locations in financial centres
around the globe: Canadian Personal and Commercial Banking,
including TD Canada Trust and TD Auto Finance Canada; U.S. Retail,
including TD Bank, America's Most Convenient Bank®, TD Auto Finance
U.S., TD Wealth (U.S.), and an investment in The Charles Schwab
Corporation; Wealth Management and Insurance, including TD Wealth
(Canada), TD Direct Investing, and TD Insurance; and Wholesale
Banking, including TD Securities and TD Cowen. TD also ranks among
the world's leading online financial services firms, with more than
17 million active online and mobile customers. TD had $1.97 trillion in assets on July 31, 2024. The Toronto-Dominion Bank trades
under the symbol "TD" on the Toronto and New York Stock Exchanges.
About the Survey
This Maru Public Opinion survey conducted on behalf of TD
Insurance was undertaken by the sample and data collection experts
at Maru/Blue. 752 randomly selected Canadian adults who are owners
or decision makers of small business with revenues less than
$5M, less than 100 employees and are
Maru Voice Canada online
panelists were surveyed from August
2nd to August
9th 2024. For comparison purposes, a probability
sample of this size has an estimated margin of error (which
measures sampling variability) of +/- 3.6%, 19 times out of 20.
Discrepancies in or between totals when compared to the data tables
are due to rounding.
SOURCE TD Insurance