What Awaits Business Insurance in 2023?

If 2022 was any indicator, 2023 is bound to be a turbulent year. If you own or manage a business, it’s essential that you be ready for all the ups and downs.

One of the ways to prepare yourself is to obtain adequate business insurance. The good news is that there are various policies for covering different risks. Consequently, you can save money by buying only the policies you need based on the types of issues you’re likely to encounter.

For example, if your company doesn’t own or lease vehicles for business purposes like deliveries, you probably don’t need a commercial auto insurance policy. Similarly, if you don’t provide professional advice or services, you likely don’t need professional liability coverage.

But virtually every company requires some form of business insurance. If yours does, you may be wondering what’s ahead for small business insurance in 2023.

Getting Small Business Insurance in 2023 Will Be Even More Convenient

As the business landscape changes, small business insurance evolves with it. That will continue in 2023.

One area where business owners will notice improvements is how easy it is to get business insurance. Increasingly, leading insurers are enabling potential customers to obtain instant online policy quotes without any requirement to interact with a company representative.

That’s very convenient for busy company owners and decision-makers. They can go online whenever they have a few spare minutes—before the workday starts, in the evening, etc.—and find out what they’ll pay for different policies. This includes commonly needed coverages such as general liability insurance, a workers’ comp policy, professional liability insurance (also called errors and omissions or E&O), a commercial auto policy, umbrella coverage, cyber insurance, etc.

Then, should they decide to purchase policies, they can also do that online. In addition, forward-thinking insurance companies enable policyholders to report claims and manage their policies online.

Business Owners Can Pay Less for Insurance in 2023 With the Right Insurer

It’s likely that in 2023, more companies will learn that they can save money on their business insurance by using the right provider. Some insurers are adopting a direct-to-you business model that cuts out brokers and can save businesses as much as 20% compared to other insurance companies.

Those savings can then be used however the owner chooses—funding R&D, increasing marketing outreach, improving the bottom line, etc.

The Industry May Have a Higher Percentage of Trustworthy Providers in 2023

The insurance industry has added many new companies in recent years, not all of which have the experience, financial resources, and other attributes needed to serve their customers properly. If there’s good news about the challenging times we faced in 2022 and may see again in 2023, it’s that they tend to separate the “contenders” from the “pretenders,” with the latter often closing their doors.

As a result, companies looking for business insurance in the coming year may be less likely to encounter insurers with questionable credentials and more likely to find trustworthy providers.

One Thing Won’t Change in 2023: Small Business Insurance Is Essential

The unfortunate truth is that one significant incident that’s not covered by insurance can leave a small business with a large financial burden. And, in many cases, it’s a debt that effectively forces the company out of business.

Ensure yours isn’t one of them by buying and maintaining the insurance coverage you need to protect your small business!

Amelia Rivera

Amelia Rivera is a graduate of Harvard Business School who has spent over 16 years in the service industry, focusing on customer experience and service innovation. She provides insights into service management and customer satisfaction strategies. Her background includes management roles in hospitality and consulting. Previously, she worked with several multinational corporations, developing their customer service protocols. She enjoys yoga and is passionate about animal rescue and welfare. She is a great traveler and a gourmet food blogger in her spare time.

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