9+ Small Business Insurance Statistics & Facts in 2024

Small business insurance is essential for safeguarding companies from unexpected risks and financial setbacks. 

But just how many small businesses have adequate insurance coverage in place? 

With that in mind, we’ll cover key small business insurance statistics that you must know in 2024.

Small Business Insurance Statistics: Key Numbers

• 40% of small business owners have no insurance at all.  
• 75% of businesses are not adequately insured.  
• A general liability policy averaged $42 per month or $500 per year.
• 54 % of small business owners purchase general liability insurance.
• 76% of small businesses don’t buy insurance online. 
• 7 million small businesses depend on commercial insurance to stay afloat.  
• 52% of 3-9 employee small businesses do not provide health insurance.  
• 31% of SMBs have cyber insurance.  
• Over the next decade, 40% of small firms will file an insurance claim. 
• Burglary and theft account for 20% of small business insurance claims.
• 6.6% of small business insurance claims are for property damage from fire, storms, or busted pipes.

Source: (Nytimes, The Hartford, Insurance Journal , Yahoo, PWC, Forrester, ChamberofCommerce, BusinessInsider)

Monthly General Liability Insurance Costs for Small Businesses

• 29% of small businesses pay under $30 per month for general liability insurance.
• 41% of small businesses pay between $30 and $60 per month for general liability insurance.
• 30% of small businesses pay over $60 per month for general liability insurance.

Source:  Insureon

Small Business Health Insurance Statistics

• 56% of small employers currently provide health insurance to their employees.
• 89% of firms with 30 or more employees offer health insurance.
• 39% of businesses with 1-9 employees provide health insurance.
• 65% of small employers do not offer health insurance because it is too expensive.
• 88% of independent businesses with 30 or more employees say they do not offer health insurance because of the high cost.
• 63% of businesses with 1-9 employees say cost is the primary reason for not providing health insurance.
• 70% of businesses with 10-29 employees cite cost as the primary reason for not providing health insurance.
• Nearly 50% of small employers that do not offer health insurance do not plan to offer it in the future.
• 63% of all employers believe that providing health insurance is critical for attracting and retaining workers.
• 94% of small employers find it challenging to manage the cost of offering employer-sponsored health insurance.
• 98% of small businesses that provide health insurance are concerned that the costs will become unsustainable in the next 5-10 years.

Sources: (NFIB,)

Small Business Cyber Insurance Statistics

• 31% of SMBs have cyber insurance.  
• 57% of SMEs have experienced cybersecurity breaches.
• The total average cyber insurance claim for SMEs between 2017 and 2021 is $345,000.
• From 2016 to 2020, SMEs accounted for 99% of cyber insurance claims.
• Annual cyber insurance premiums are expected to rise by 25-30% per year through 2025.

Sources: (Guardz, CyberScout, Netdiligence, S&P Global Ratings)

Reasons Small Business Owners Want to Update Insurance Coverage

• 36.9% of small business owners would like to update insurance coverage to get coverage better suited to current needs.
• 32.7% of small business owners would like to update insurance coverage to add coverage they weren’t aware they needed.
• 25.0% of small business owners would like to update insurance coverage to avoid the risk of not being covered.
• 18.4% of small business owners would like to update insurance coverage to pay less.
• 0.8% of small business owners selected “Others” for reasons to update insurance coverage.

Source: Deloitte Insights

Insurance Status of Small Business Owners

• 30% of small business owners have other private insurance.
• 25% of small business owners are uninsured.
• 21% of small business owners have job-based insurance as a dependent.
• 19% of small business owners have insurance from their own jobs.
• 6% of small business owners have Medicaid or Medicare

Source: Kaiser Family Foundation