9+ Small Business Insurance Statistics & Facts [2023 Update]

Let’s start by reviewing some of the key small business insurance statistics.

Small Business Insurance Statistics: Key Numbers

40% of small business owners have no insurance at all.
75% of businesses are not adequately insured.
A general liability policy averaged $42 per month or $500 per year.
54 % of small business owners purchase general liability insurance.
76% of small businesses don’t buy insurance online.
7 million small businesses depend on commercial insurance to stay afloat.
52% of 3-9 employee small businesses do not provide health insurance.
31% of SMBs have cyber insurance.
Over the next decade, 40% of small firms will file an insurance claim.
Burglary and theft account for 20% of small business insurance claims.
6.6% of small business insurance claims are for property damage from fire, storms, or busted pipes.

Source: (Nytimes, The Hartford, Insurance Journal , Yahoo, PWC, Forrester, ChamberofCommerce, BusinessInsider)

29% of small businesses pay under $30 per month for general liability insurance.
41% of small businesses pay between $30 and $60 per month for general liability insurance.
30% of small businesses pay over $60 per month for general liability insurance.

Source: Insureon

56% of small employers currently provide health insurance to their employees.
89% of firms with 30 or more employees offer health insurance.
39% of businesses with 1-9 employees provide health insurance.
65% of small employers do not offer health insurance because it is too expensive.
88% of independent businesses with 30 or more employees say they do not offer health insurance because of the high cost.
63% of businesses with 1-9 employees say cost is the primary reason for not providing health insurance.
70% of businesses with 10-29 employees cite cost as the primary reason for not providing health insurance.
Nearly 50% of small employers that do not offer health insurance do not plan to offer it in the future.
63% of all employers believe that providing health insurance is critical for attracting and retaining workers.
94% of small employers find it challenging to manage the cost of offering employer-sponsored health insurance.
98% of small businesses that provide health insurance are concerned that the costs will become unsustainable in the next 5-10 years.

Sources: (NFIB,)

31% of SMBs have cyber insurance.
57% of SMEs have experienced cybersecurity breaches.
The total average cyber insurance claim for SMEs between 2017 and 2021 is $345,000.
From 2016 to 2020, SMEs accounted for 99% of cyber insurance claims.
Annual cyber insurance premiums are expected to rise by 25-30% per year through 2025.

Sources: (Guardz, CyberScout, Netdiligence, S&P Global Ratings)

36.9% of small business owners would like to update insurance coverage to get coverage better suited to current needs.
32.7% of small business owners would like to update insurance coverage to add coverage they weren’t aware they needed.
25.0% of small business owners would like to update insurance coverage to avoid the risk of not being covered.
18.4% of small business owners would like to update insurance coverage to pay less.
0.8% of small business owners selected “Others” for reasons to update insurance coverage.

Source: Deloitte Insights

Source: Kaiser Family Foundation