Small business owners are grappling with economic uncertainty going into 2023 and are looking at controlling their expenses as a result. This includes insurance costs, which could impact the restoration industry.
According to the Agency Forward survey from Nationwide, 84% of small business owners say they have reviewed or plan to review their insurance policies soon. As they look to reduce operational costs, 51% of business owners say they would be likely to decrease their business's current insurance coverage or limits to cut back on spending if a recession occurs. This may be because 52% expect their premiums to increase over the next six months.
"With so many small business owners considering changes to their insurance, it is startling that only 29% of owners have connected with their agent to discuss their policies, especially as inflation and supply chain issues continue to drive up repair costs and timelines,” said Eric Coleman, senior vice president of small business insurance at Nationwide.
"In those conversations, business owners should ask about and consider how lack of coverage or appropriate limits could impact their operations in the future. Making decisions and updates without speaking to an agent could counter cost-saving attempts."
Only 27% of small business owners say current business conditions are strong in the US, and just over a third feel similarly about their own region or city (36%). Their outlook for the future is even more grim with 70% of small businesses anticipating a recession in the next six months, but only 37% feeling ready for it.