Did you know there’s a 20% chance one of your employees will be involved in an auto accident while driving a company vehicle this year?
Or that about 50% of insurance claims made by landlords are for loss of rental income?
That’s just the tip of the iceberg!
If you employ drivers, own a restaurant, rent office space, or are a landlord, you’ll want to read these business insurance facts about your industry today.
Topics Covered
Commercial Auto Insurance Facts
A whopping two out of every ten commercial fleet vehicles are involved in an auto accident every year, according to Automotive Fleet.
It’s no surprise that driving is inherently risky, but it’s even riskier for company drivers because they’re on the road for longer hours and drive more miles than non-working drivers. These statistics are proof that, as a small business owner, you need to make sure you have the right amount of commercial auto insurance coverage for your needs.
- The average workplace insurance claim for an auto injury is $70,000.
- 30% of drivers feel confident in their ability to text and drive.
- 20% of injuries from car accidents occur because of distracted driving.
- You’re 23 times more likely to get into an automobile accident texting while driving.
- Drivers using cell phones fail to see up to 50% of the information in their driving environment (stop signs, broken-down vehicles, pedestrians, etc.).
- About 1 in 5 people who died in crashes involving a distracted driver in 2019 were not in vehicles.
- 54% of drivers believe distracted and aggressive driving has increased since the pandemic.
- 30% of drivers report feeling more anxious driving than before the pandemic.
- 42% of drivers accept work-related calls and texts while driving.
- Drivers under 35 are ten times more likely than drivers 55 and older to think they can safely text and drive.
Given these statistics, you might want to read our post on distracted driving today.
Restaurant Insurance Facts
Do you know what the most common types of insurance claims due to workplace injuries in the restaurant and hospitality industry are? Slip-and-falls, muscle strains, and cuts and burns.
The food service industry employs 12-13 million workers annually, according to the Bureau of Labor Statistics, which means there are plenty of opportunities for accidents to happen.
Consider slips and falls, the biggest restaurant workplace injury offender:
- 67% of workers in wet kitchens reported some type of slip or floor-related “incident” or accident at least once per month.
- 92% of those working in wet kitchens reported slippery floors during the week.
- 62% of the dry kitchen workers reported that slip-related accidents occurred once or twice per year in dry kitchens.
- Of those working in dry kitchens, 40% reported that the floor was slippery one or more times during the week.
- 75-80% of kitchen workers reported slip-and-fall-related accidents, making this workplace hazard worth taking seriously.
But what about other hazards like cuts, punctures, and scrapes?
On average, these types of accidents account for 1/3 of all workers’ compensation claims in the restaurant industry.
These accidents negatively affect restaurant owners and their employees through lost time—1/3 of nonfatal injuries and illnesses in full-service restaurants required at least one day out of work in 2019—wages and decreased productivity.
Landlord Insurance Facts
Being a landlord is a popular way to generate income and shows no signs of slowing down. Consider these facts:
- Individual landlords own about 72% of all rental properties in the United States.
- Rental units owned by individual investor landlords: 20.5 million.
- Rental units owned by businesses or partnerships: 25.8 million.
- The average landlord owns three properties
- 50% of landlords self-manage their properties
Are you one of the 10.6 million Americans who generate income from a rental property?
If so, you’ll need to make sure you purchase rental property insurance, also referred to as “landlord insurance.” Your homeowner’s insurance won’t cover your rental property because when you collect money in exchange for housing, you’re entering into a taxable business arrangement with more risk than a standard homeowners policy can cover.
Landlord insurance covers your risks when you’re renting out your house or condo for long periods, and it typically covers damage from:
- Fire
- Weather
- Criminal Activity, such as Break-Ins
- Accidental Tenant Damage
Other structures, such as sheds and detached garages, and maintenance equipment needed to maintain your property (lawnmowers, snow blowers, etc.), are often covered as well.
If you’re a landlord, these are the most common reasons why you’ll file an insurance claim:
- Loss of Rental Income
- Tenant/Guest Injuries
- Water Damage
- Weather Damage
- Accidental Damage
- Malicious Damage
- Fire Damage
- Theft
- Negligence
- Impact Damage (coverage for motor vehicle, aircraft, watercraft damage, etc.)
Business Office Insurance Facts
Offices are supposed to be safe places, but unfortunately, accidents happen. Small business insurance can play a key role in protecting your livelihood from unforeseen circumstances.
Consider that 7 out of 32.5 million small businesses in the United States—over 21%–currently rely on commercial insurance to stay in business.
Is operating a business office really that risky? Let’s find out!
- Office workers are 2-2.5 times more likely to suffer a disabling injury from a fall than non-office workers
- What are the most common causes of disabling office injuries?
- Trip Hazards (Open Drawer/Desk/File Cabinet, Cords & Wires, Loose Carpeting, etc.)
- Bending/Reaching from an Unstable Chair
- Using a Chair Instead of a Ladder
- Wet Floors
- Poor Lighting
- What are the most common causes of workplace fatalities?
- Struck by Vehicle/Vehicle Crash/Moving Object
- Slips/Trips/Falls from High Places
- Electrocution
- Caught in Machine/Device/Tool
- Average Burn Claim: $58,000
- Average Slip and Fall Claim: $47,000
- Number of Nonfatal Workplace Injuries and Illnesses in 2021: 2.6 Million
Conclusion
These eye-popping statistics reveal just how risky operating a small business can be.
Ensuring you’ve got the proper coverage is prudent because the chances are you’re going to need it.
But how do you choose the best insurance company for your small business needs?
Select an insurance company with an “A” rating that is well-established and has a reputation for excellent customer service, quick payouts, and solid coverage.
Are you ready to protect your dreams and achieve your business goals? Find an agent near you today. We look forward to the opportunity to serve you!
Sources
Berg & Berg. Restaurant Accident Facts.
Bureau of Labor Statistics. Employer-Reported Workplace Injuries and Illnesses – 2021.
Entrepreneur. The 5 Types of Landlords Businesses Will Encounter.
Crown Mats. Survey Finds Where Most Slips and Falls Happen in Restaurant Kitchens.
Centers for Disease Control and Prevention (CDC). Distracted Driving.
JP Morgan Chase. How did landlords fare during COVID?
MySmartMove. TransUnion Research on Landlord Characteristics [INFOGRAPHIC].
Pew Research Center. As national eviction ban expires, a look at who rents and who owns in the U.S.
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