Thanks to inflation, a business-disrupting disaster now costs more money to fix – but a study found that only 43% of businesses have increased insurance limits.
BRANCHVILLE, N.J. – A Harris Poll of 300 U.S. business owners found that only 43% have increased their business insurance policy limits to account for inflation.
The study was funded by Selective Insurance, which says the higher costs for coverage are caused by the rising price of goods and services, higher wages, and increased interest rates for loans, all of which can impact the cost to rebuild or resume operations after a claim.
“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,” says Brenda Hall, executive vice president, commercial lines chief operating officer.
The study found that 38% of U.S. business owners don’t 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. Nearly 1 in 4 business owners (22%) haven’t purchased insurance for their business.
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