The most common small business claims made against commercial insurance policies.

Many small business owners only purchase the insurance that is required of them in contracts to do business. However, a small business that does not have adequate coverage is putting the business at risk of a significant financial loss. Here we will review the most common types of claims made by small businesses we see at Hanneken Insurance Agency Inc.

Theft and burglary are the top types of claims made under commercial policies. While these claims tend to cost less than other sorts of claims, over time, it can start to add up. In addition to an insurance policy, businesses should have systems in place to reduce the likelihood such as an alarm system. 

Water damage is another common claim made by small businesses. People find this surprising, as they think of their office space on the 5th floor as protected from water. However, most water damage claims are the result of a bursting pipe causing widespread damage to your computer equipment. As a business owner in Little Falls, MN, this should of be a particular concern as cold winters can lead to frozen pipes that burst.

Wind and Hail damage is another leading driver of insurance claims for small businesses. Hail can cause a massive amount of destruction in a short amount of time. Losses stemming from hail can leave a company recovering for years, speak with your agent to see if your policy covers hail damage. 

Fire is another frequent and costly claim made under commercial policies. In addition to having property insurance in place, business owners should rent office space that has an adequate sprinkler system that will help limit the damage in the event of a loss. 

If you are a small business owner interested in learning more about a commercial insurance policy package, please feel free to reach out to us at Hanneken Insurance Agency Inc. We proudly serve the Little Falls, MN area.