GITNUXREPORT 2025

Small Business Insurance Statistics

Small businesses increasingly prioritize insurance, facing costs, claims, and coverage gaps.

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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Statistic 1

Around 40% of small businesses experience an insurance claim annually

Statistic 2

Small business owners are twice as likely to experience a cyberattack compared to large corporations, making cyber liability insurance increasingly vital

Statistic 3

30% of small businesses do not have any form of business insurance at all

Statistic 4

25% of small businesses experience a property theft or vandalism incident each year

Statistic 5

For small businesses, the most common reason for purchasing insurance is legal liability concerns

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The number of claims related to employee injury in small businesses accounts for about 40% of all claims filed

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Small business insurance claims related to product liability account for nearly 20% of all claims

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Small business owners in the healthcare industry are 40% more likely to purchase liability insurance due to regulatory requirements

Statistic 9

Small business owners report that misunderstanding policy terms is a barrier, cited by 35% of respondents

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Nearly 50% of small businesses experience a claim related to employee injury within the first three years of operation

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30% of small business owners have turned down opportunities or clients due to insurance costs or coverage limitations

Statistic 12

Nearly 60% of small businesses believe that business insurance is essential for their operation

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65% of small business owners say they are more aware of the importance of insurance after the COVID-19 pandemic

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70% of small business owners seek insurance quotes online

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Approximately 50% of small business owners use insurance brokers to find suitable policies

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Business owners aged 50 and above are 30% more likely to invest in comprehensive small business insurance policies

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Approximately 35% of small business owners increase their insurance coverage after a major event or claim

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Approximately 80% of small business owners perceive cyber liability insurance as critical, though only 50% actually carry it

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22% of small businesses update their insurance policies annually to reflect changes in business size or scope

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Approximately 80% of small business owners consider insurance as a key factor in business longevity

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Small businesses that utilize specialized insurance brokers report a 25% better satisfaction rate with their policies

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Small business owners who participate in insurance review meetings report a 20% better understanding of policy coverage

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Small businesses pay an average of $750 per year for insurance coverage

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The median cost of general liability insurance for small businesses is approximately $42 per month

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The average small business will pay approximately $1,200 annually for workers' compensation insurance

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Small businesses that experience a cyberattack lose an average of $60,000 from data breaches

Statistic 27

Small business insurance premiums increased by 15% on average over the last five years

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The average cost of commercial auto insurance for small business owners is approximately $1,200 per vehicle annually

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About 45% of small businesses believe that they pay too much for insurance coverage

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Small business owners report that the primary challenge in obtaining insurance is high premiums, cited by 55% of respondents

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Small business insurance policies with comprehensive coverage tend to cost 25% more than basic policies

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The average payout for a claim related to business property damage is approximately $4,500

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Small business insurance premiums are about 12% higher for companies with higher revenue, particularly over $1 million annually

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Small businesses in urban areas face higher insurance premiums—about 18% more—compared to rural counterparts

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The average claim resolution time for small business insurance claims is approximately 30 days

Statistic 36

Business continuity planning increases the likelihood of obtaining favorable insurance premiums by 15%

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20% of small business owners have faced challenges in obtaining insurance due to their industry type

Statistic 38

The telecommunication industry has the highest average insurance claim payout among small businesses, at about $8,000 per claim

Statistic 39

10% of small businesses are classified as high-risk industry types such as construction, manufacturing, or food services

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The construction industry accounts for approximately 25% of all small business insurance claims

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The most common type of small business insurance claim is for property damage, accounting for approximately 35% of claims

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Business interruption insurance can cover up to 80% of lost income during a covered event

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About 15% of small businesses with employees offer health insurance to their staff

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Small businesses with fewer than 5 employees are less likely to have insurance compared to larger small businesses with 20+ employees

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Small businesses with existing insurance are 50% less likely to suffer financial hardship after a claim

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The fastest growing segment of small business insurance is cyber liability, with a compound annual growth rate of 22%

Statistic 47

Less than 20% of small businesses have multiple types of insurance policies, indicating coverage gaps

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Key Highlights

Small businesses pay an average of $750 per year for insurance coverage
Around 40% of small businesses experience an insurance claim annually
The most common type of small business insurance claim is for property damage, accounting for approximately 35% of claims
Nearly 60% of small businesses believe that business insurance is essential for their operation
65% of small business owners say they are more aware of the importance of insurance after the COVID-19 pandemic
Small business owners are twice as likely to experience a cyberattack compared to large corporations, making cyber liability insurance increasingly vital
30% of small businesses do not have any form of business insurance at all
Business interruption insurance can cover up to 80% of lost income during a covered event
About 15% of small businesses with employees offer health insurance to their staff
The median cost of general liability insurance for small businesses is approximately $42 per month
25% of small businesses experience a property theft or vandalism incident each year
The average small business will pay approximately $1,200 annually for workers' compensation insurance
Small businesses that experience a cyberattack lose an average of $60,000 from data breaches

Did you know that while nearly 60% of small businesses consider insurance essential, over 30% still lack any coverage, leaving many vulnerable to costly property damage, cyberattacks, and employee injuries?

Business Challenges and Risks

Around 40% of small businesses experience an insurance claim annually
Small business owners are twice as likely to experience a cyberattack compared to large corporations, making cyber liability insurance increasingly vital
30% of small businesses do not have any form of business insurance at all
25% of small businesses experience a property theft or vandalism incident each year
For small businesses, the most common reason for purchasing insurance is legal liability concerns
The number of claims related to employee injury in small businesses accounts for about 40% of all claims filed
Small business insurance claims related to product liability account for nearly 20% of all claims
Small business owners in the healthcare industry are 40% more likely to purchase liability insurance due to regulatory requirements
Small business owners report that misunderstanding policy terms is a barrier, cited by 35% of respondents
Nearly 50% of small businesses experience a claim related to employee injury within the first three years of operation
30% of small business owners have turned down opportunities or clients due to insurance costs or coverage limitations

Business Challenges and Risks Interpretation

With nearly half of small businesses facing employee injury claims within three years and a significant 30% turning down opportunities due to costs, it's clear that without comprehensive insurance and clear understanding of coverage, even the most resilient startups are playing a risky game in a litigious and cyber-threatened landscape.

Business Owner Behaviors and Perceptions

Nearly 60% of small businesses believe that business insurance is essential for their operation
65% of small business owners say they are more aware of the importance of insurance after the COVID-19 pandemic
70% of small business owners seek insurance quotes online
Approximately 50% of small business owners use insurance brokers to find suitable policies
Business owners aged 50 and above are 30% more likely to invest in comprehensive small business insurance policies
Approximately 35% of small business owners increase their insurance coverage after a major event or claim
Approximately 80% of small business owners perceive cyber liability insurance as critical, though only 50% actually carry it
22% of small businesses update their insurance policies annually to reflect changes in business size or scope
Approximately 80% of small business owners consider insurance as a key factor in business longevity
Small businesses that utilize specialized insurance brokers report a 25% better satisfaction rate with their policies
Small business owners who participate in insurance review meetings report a 20% better understanding of policy coverage

Business Owner Behaviors and Perceptions Interpretation

While nearly 60% of small business owners see insurance as vital and awareness has surged post-pandemic, a concerning gap remains as only half seek online quotes, just half carry cyber liability coverage despite acknowledging its importance, and a significant portion overlook annual policy updates, highlighting that even in the world of commerce, diligent protection still needs a little more than just good intentions.

Costs and Premium Trends

Small businesses pay an average of $750 per year for insurance coverage
The median cost of general liability insurance for small businesses is approximately $42 per month
The average small business will pay approximately $1,200 annually for workers' compensation insurance
Small businesses that experience a cyberattack lose an average of $60,000 from data breaches
Small business insurance premiums increased by 15% on average over the last five years
The average cost of commercial auto insurance for small business owners is approximately $1,200 per vehicle annually
About 45% of small businesses believe that they pay too much for insurance coverage
Small business owners report that the primary challenge in obtaining insurance is high premiums, cited by 55% of respondents
Small business insurance policies with comprehensive coverage tend to cost 25% more than basic policies
The average payout for a claim related to business property damage is approximately $4,500
Small business insurance premiums are about 12% higher for companies with higher revenue, particularly over $1 million annually
Small businesses in urban areas face higher insurance premiums—about 18% more—compared to rural counterparts
The average claim resolution time for small business insurance claims is approximately 30 days
Business continuity planning increases the likelihood of obtaining favorable insurance premiums by 15%

Costs and Premium Trends Interpretation

Despite paying around $750 annually and navigating a 15% premium hike over five years—driven partly by high claims and urban location—small businesses often find themselves in a costly dance with insurance, as the looming threat of cyberattacks and property damage remind us that safeguarding their future is both an expense and an urgent necessity.

Industry-Specific Insights

20% of small business owners have faced challenges in obtaining insurance due to their industry type
The telecommunication industry has the highest average insurance claim payout among small businesses, at about $8,000 per claim
10% of small businesses are classified as high-risk industry types such as construction, manufacturing, or food services
The construction industry accounts for approximately 25% of all small business insurance claims

Industry-Specific Insights Interpretation

These statistics reveal a sobering reality: while only 10% of small businesses operate in high-risk sectors like construction and manufacturing, they generate a quarter of all insurance claims—highlighting both the resilience and vulnerability of our small business landscape, and underscoring the industry's urgent need for tailored coverage solutions.

Insurance Coverage and Types

The most common type of small business insurance claim is for property damage, accounting for approximately 35% of claims
Business interruption insurance can cover up to 80% of lost income during a covered event
About 15% of small businesses with employees offer health insurance to their staff
Small businesses with fewer than 5 employees are less likely to have insurance compared to larger small businesses with 20+ employees
Small businesses with existing insurance are 50% less likely to suffer financial hardship after a claim
The fastest growing segment of small business insurance is cyber liability, with a compound annual growth rate of 22%
Less than 20% of small businesses have multiple types of insurance policies, indicating coverage gaps

Insurance Coverage and Types Interpretation

While property damage remains the primary culprit for small business claims, the growing prominence of cyber liability underscores that in today's risk landscape, neglecting comprehensive coverage—even for the tiniest enterprises—can leave them vulnerable to a costly digital storm, especially when only a fraction offer health benefits or multiple policies to shore up against unforeseen setbacks.