SELECTIVE INSURANCE STUDY FINDS LESS THAN HALF OF BUSINESS OWNERS HAVE INCREASED INSURANCE LIMITS TO ACCOUNT FOR INFLATION

Rhea-AI Summary

Selective Insurance conducted a study revealing that only 43% of U.S. business owners have raised their insurance limits in response to inflation. The survey, conducted by The Harris Poll among 303 business owners, highlights a lack of understanding, with 38% unaware of their coverage scope and 22% without insurance. Selective's Business Owners Policy (BOP) addresses inflation-driven construction costs, potentially aiding businesses in maintaining adequate coverage. The study underscores the importance of consulting with agents for proper insurance assessment.

Positive

• Selective's Business Owners Policy offers protection against inflation-driven construction cost increases.
• BOP automatically increases insurance limits during the policy term, aiding in coverage maintenance.

Negative

• Only 43% of business owners have increased their insurance limits, indicating widespread underinsurance.
• Nearly 38% of business owners lack understanding of their insurance coverage.

Selective's Business Owners Policy Helps Small Businesses Protect Against Underinsurance in Times of High Inflation

BRANCHVILLE, N.J., May 10, 2022 /PRNewswire/ --  Selective Insurance today announced the results of a January 2022 study conducted on its behalf by The Harris Poll among over 300 U.S. business owners, which found that only 43% of U.S. business owners have increased their business insurance policy limits to account for inflation. These updates were influenced by things such as increases in the costs of goods and services, higher wages, and increased interest rates for loans, all of which may impact the cost to rebuild or resume operations after a claim.

43% of U.S. business owners have increased their business insurance policy limits to account for inflation.

"With inflation's impact on the economy, it's imperative that business owners work with their agents to evaluate the adequacy of their insurance coverage and limits," said Brenda Hall, Executive Vice President, Commercial Lines Chief Operating Officer.

The Selective study found that nearly 2 in 5 U.S. business owners (38%) do not fully understand the scope of their insurance coverage. As a result, they likely do not know how to assess on their own if they are appropriately protected. Additionally, nearly 1 in 4 business owners (22%) have not purchased insurance for their business.  

Added Hall, "Selective works closely with independent insurance agents to help small businesses assess their exposures and understand the coverage options that align with their business operations. Many business owners find that Selective's Business Owners Policy (BOP), which includes protection against inflation-driven construction cost increases, is the perfect solution."

Selective's BOP policy can help reduce the need to monitor property insurance limits during a policy term by automatically increasing the limit of insurance for the property to which it applies over the course of the policy year. This feature can help small businesses maintain adequate property insurance limits during inflationary periods.

For more information about Selective's BOP policies for small business, visit: https://www.selective.com/for-businesses/businesses-insurance-coverage/business-owners-policy

Survey Method:

This survey was conducted online within the United States by The Harris Poll on behalf of Selective Insurance from January 20-24, 2022, among 303 U.S. adults ages 18 and older who own a business. This online survey is not based on a probability sample, and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact Katelyn.Leondi@Selective.com.

About Selective Insurance Group, Inc.

Selective Insurance Group, Inc. (NASDAQ: SIGI) is a holding company for 10 property and casualty insurance companies rated "A+" (Superior) by AM Best. Through independent agents, the insurance companies offer standard and specialty insurance for commercial and personal risks and flood insurance through the National Flood Insurance Program's Write Your Own Program. Selective's unique position as both a leading insurance group and an employer of choice is recognized in a wide variety of awards and honors, including the Fortune 1000 and being named a Great Place to Work^® in 2021. For more information about Selective, visit www.Selective.com.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/selective-insurance-study-finds-less-than-half-of-business-owners-have-increased-insurance-limits-to-account-for-inflation-301543989.html

SOURCE Selective Insurance Group, Inc.

FAQ

What percentage of business owners increased their insurance limits according to Selective's study?

Only 43% of U.S. business owners have increased their insurance limits to account for inflation.

What did the Selective Insurance study find about business owners' understanding of their coverage?

The study revealed that 38% of U.S. business owners do not fully understand the scope of their insurance coverage.

How does Selective's Business Owners Policy help small businesses?

Selective's BOP provides protection against inflation-driven construction costs and automatically increases insurance limits.

What percentage of business owners do not have insurance?

The study found that 22% of business owners have not purchased insurance for their business.

Who conducted the study for Selective Insurance?

The study was conducted by The Harris Poll from January 20-24, 2022, among 303 U.S. business owners.