8 Common Business Insurance Claims

The Most Common Business Insurance Claims in San Diego, CA

Damages, theft, and accidents are situations no San Diego business owner wants to think about. Nonetheless, these are some of the reasons that underscore the need for reliable San Diego commercial insurance coverage. If you want to know the risks and hazards your company could face when doing business, check out the following statistics compiled by major American insurers from 2010 to 2014.

1. Theft

A little over 20 percent of all claims filed by business owners in the United States are related to theft. From shoplifting and burglary to robberies and employee fraud, theft is the most common type of insurance claim filed by companies of all sizes.

2. Water Damage

Even if your business is not located on a floodplain like Mission Valley, water damage could still be caused by plumbing incidents. In many cases, the damage water causes to equipment, supplies, and inventory is permanent. Not surprisingly, water damage claims are often filed after periods of inclement weather and rainstorms.

3. Fire Damage

As one of the most destructive losses, fire damage accounts for 10 percent of all commercial insurance claims even though modern businesses have the benefit of installing sophisticated fire protection systems. One in every 10 claims filed by American business owners are related to fire damage.

4. Harm to Reputation

Potentially tighter legislation against libel, slander, and defamation has been an interesting talking point emerging from the White House in 2017. Since five percent of business claims are related to harmed business reputation, the insurance industry is paying attention to this development.

5. Road Traffic Accidents

Five percent of claims by business owners involve vehicular accidents, a significantly lower rate than non-commercial auto insurance. In the small business sector, vehicle safety programs tend to be efficient in terms of reducing loss.

6. Slip and Fall Accidents

These unfortunate situations account for 10 percent of commercial claims, a statistic that may seem low considering the popular image of a shopper slipping on the wet floor of a grocery store. An injured customer is something all business owners hope to never have to deal with, but accidents can happen under any conditions. For cases such as these, it’s a good idea to be covered by San Diego general liability insurance.

7. Cyber Crimes

Cyber liability coverage is a relatively new concept in the insurance industry. However, the number of claims related to data breaches has increased substantially over the last few years. In 2013, more than 10,000 claims were filed against cyber liability insurance policies. More business owners are obtaining policies that protect against network intrusions since they may not always be covered under the theft provisions of traditional policies.

8. Product Liability

These claims sometimes involve customers injured by products, but in most cases they are related to products that do not work as they should. Software developers are increasingly seeking coverage to protect them in case their creations bring about more problems than solutions.

Employee injuries are also a major concern, which makes it important to obtain workers’ compensation insurance in San Diego. If you run a business and are looking for affordable and reliable commercial insurance options, reach out to American Tri-Star today at 619-272-2100. One of our knowledgeable and friendly agents would be happy to assist you.