2017 Small Business Industry Risks
Small businesses generally reported being less concerned about a number of business risks compared to businesses overall, including cyber-related risks and legal liability related to employee driving accidents. Small businesses are also less likely to have a business continuity plan.
Small businesses report being slightly less concerned about business risk than businesses overall, with 33% saying business is getting somewhat or much more risky, compared with 37% of businesses of all sizes. It’s a theme that is consistent across the top five business concerns for small businesses, which include cyber risks, increasing employee benefits costs and legal liability.
Only 30% of small businesses reported having a business continuity plan in place, compared with just over half (52%) of all businesses. Consulting with insurance agents and having an insurance to value (ITV) assessment can help small businesses evaluate whether they have sufficient property insurance limits in place.
While 56% of businesses overall are concerned about cyber risks, only 44% of small businesses list it as a top worry. Among their leading concerns about cyber risk, small businesses are most worried about their company’s computers becoming damaged or going down (43%), an intruder gaining access to their company’s banking accounts or financial control systems (43%), and a security breach, such as someone hacking into their computer system (38%). Despite these concerns, only 7% of small businesses report buying separate cyber coverage, and 39% said they did not need cyber insurance because of other protections they had in place.
With the workplace evolving to include a multi-generational workforce and an increasingly mobile office culture, nearly a third (32%) of small businesses report concerns about the changing workforce, an emerging trend. More than a third (37%) are concerned about their ability to attract and retain talent and skilled labor. One in five (22%) are concerned about legal liability related to driving accidents caused by their employees, compared with 32% of businesses of all sizes.
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