1 in 5 small businesses see a temporary shut down as their biggest liability, yet many don't have insurance to protect themselves: TD Insurance survey
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 Businesswebsite .
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
