2020 Small Business Risk Report
Hanover Small Commercial

Changing risk landscape

Small business, large risks

A majority of small business owners reported being confident they're adequately insured so they can focus on their core businesses. However. there are growing areas of concern and vulnerability. Our report found that these businesses are increasingly wary of issues regarding employment practices and related litigation. That concern increases with the number of employees the business has.

Here are four key areas of vulnerability SBOs reported.

Employment practices

reported vulnerability to workplace discrimination, wrongful discharge or harassment, but only 38% expressed extreme confidence they were adequately insured against these lawsuits


hold events for employees, customers, and vendors — which presents new and on-going challenges for small businesses

Advice, consulting and training

report providing advice, consulting services or training — illustrating the need for errors and omissions coverage for many small businesses


feel vulnerable to theft of property, yet of those, only 18% conduct background checks on new employees or vendors

It is more important than ever for small business owners to be thoughtful and vigilant as they bring employees back to work, host events, and provide consultation and training, now and in the future. As concerns and vulnerabilities continue to evolve, agents who partner with carriers who can provide coverages and service to address both the traditional and more unique risks that small business owners face will enable them to continue to meet their needs.

Small business owners are finding themselves with a growing list of new concerns for their business — from group gatherings, to employee conduct. They're rapidly learning that being a small business doesn't protect them from big business problems. The opportunity is there for the proactive independent agent 
to lead the charge, and make sure these businesses are properly protected.

Chip Hamann, Deputy President and Chief Underwriting Officer, Small Commercial