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Small Business Liability Insurance

A Solution for Small Businesses Struggling to Find Insurance

Did you know small business owners have a 40% chance of having an incident that results in an insurance claim? What’s even more troubling is that 40% of small businesses have no insurance at all. Additionally, 60% of small business owners who operate from home don’t carry insurance either since they think they’re covered by their homeowner’s insurance. However, one of those claims can set you back tens of thousands of dollars! That kind of setback can be the difference between open doors and closed doors. If you’re a small business owner looking for some small business liability insurance, you’re in luck. Fortunately, XINSURANCE offers solutions to liability insurance for small business owners who are struggling to find insurance even if they’ve been declined, canceled, or non-renewed.

Fun Facts

Thanks to Findstack, we have some statistics that every business owner needs to be aware of.

  1. Over 99% of America’s businesses are small businesses and they accounted for 1.6 million jobs in 2020.
  2. 56% of small businesses struggle to find employees for their business.
  3. The national average amount borrowed to start a business is $10,000 and the national average income for a small business owner is $64,709.
  4. Low sales and cash flow are the #1 causes of business failure. Around 1 in 12 businesses close on average each year.
  5. About 50% of businesses survive more than 5 years. About 1/3 will survive for 10+ years.
  6. 60% of small businesses closed during the COVID pandemic, starting April 2020.

Types of Insurance for Small Business Owners

According to Forbes, there are the 13 types of insurance a small business owner should have. The ones listed in bold are types of insurance that are available through XINSURANCE. Below each type of insurance, we’ll provide some examples. Remember, XINSURANCE can provide different coverages all under one small business liability insurance policy.

  1. General Liability Insurance
  2. Property Insurance
  3. Business Owner’s Policy (BOP)
  4. Commercial Auto Insurance
  5. Worker’s Compensation
  6. Professional Liability Insurance
  7. Directors and Officers Insurance
  8. Data Breach
  9. Homeowner’s Insurance
    • We can offer as a solution and we can cover any exclusion in your current coverage
  10. Renter’s Insurance
    • We can offer as a solution and we can cover any exclusion in your current coverage
  11. Life Insurance
  12. Personal Automobile Insurance
  13. Personal Umbrella Insurance

Common Reasons Small Business Owners Don’t Get Insurance

  1. They don’t have enough money. The most common reason – starting up a business can be expensive enough as it is. Many owners take the risk of running their business without insurance until they think they can afford it.
  2. They think they’re covered by their homeowner’s insurance. Many home-based business owners think they have sufficient coverage through their homeowner’s insurance. However, this is a common misconception. According to Insurance Information Institute, homeowner’s insurance usually provides no more than $2,500 to replace damaged or stolen business equipment.
  3. They thought they were protected by some other type of coverage.
  4. They thought their business was too small to insure.

Most Common Types of Incidents Among Small Businesses

Thanks to Insureon, we have a snapshot of the most common incidents small-business owners experienced in 2016.

  • 22% – Client complaint or contract dispute (can also be one of the costliest for a business)
  • 6% – Employee injury
  • 8% – Burglary or theft
  • 6% – Fire, storm damage, or cracked pipes
  • 4% – Customer injury
  • 3% – Product that caused injury or damage

Most Expensive Types of Claims

Sure, small business liability insurance can be expensive but if a claim occurs, your costs would be much higher. According to Hartford, the 10 most expensive types of claims are:

  1. Reputational harm: $50,000
  2. Vehicle accident: $45,000
  3. Fire damage: $35,000
  4. Product liability: $35,000
  5. Customer injury or property damage: $30,000
  6. Wind and hail damage: $26,000
  7. Customer slip and fall: $20,000
  8. Water and freezing damage: $17,000
  9. Struck by object: $10,000
  10. Burglary and theft: $8,000

Awareness is Key

Being aware of the problem is half the battle. According to The Hanover Insurance Group, small business owners are aware they face risks and growing concerns but they aren’t spending enough time assessing their insurance needs.

Here are some of their key findings:

  • Small business owners (SBOs) are exposed to several risk categories, with 94% of businesses facing cybersecurity risks, followed by 72% of businesses facing employment-related and crime risks
  • 33% of SBOs completely agree they spend sufficient time devoted to assessing their insurance needs
  • 43% of SBOs haven’t reviewed their policy and coverages within the past year
  • Of the SBOs that report they are exposed to employment-related risks, only 23% are expanding insurance coverage
  • Similarly, for small businesses that face cyber-related risks, 24% are obtaining insurance coverage and 17% are expanding to address these risks
  • 82% of SBOs agree proper coverage is more important than pricing
  • Yet, only 21% are leveraging recommendations about coverage from outside experts

Small Business Liability Insurance

Don’t be afraid to invest in small business liability insurance for your business even if you’re just starting out. The costs might seem like a lot at first but over time, especially if an accident occurs, you’ll be glad you have insurance. Small businesses that do have insurance could have that policy dropped, non-renewed, or canceled as soon as an accident or lawsuit occurs. We are here to help you if you’re struggling to get insurance. No matter the case may be, don’t be a victim of insufficient coverage. Let XINSURANCE be your partner and give you the peace of mind you deserve so you can focus on running a successful business.

XINSURANCE provides customized insurance solutions as a wholesome policy or we can cover exclusions in your current policy. XINSURANCE’s “All-In-One Approach” allows business owners to have broader coverage, up to $10 million limits with higher limits available through reinsurance partners, flexible underwriting, risk management expertise, extraordinary claims results, and our partnership approach.


If you have any questions about small business liability insurance, please contact Logan Fitzgerald at 801-304-5562 or

If you’d like to request a quote, please go to our website or contact Logan.

Thank you!

Rick LindseyAuthored by Rick J. Lindsey, President, Chairman, and CEO of XINSURANCE

Rick J. Lindsey hails from Salt Lake City, Utah. He began working in the mailroom of his father’s Salt Lake City insurance firm, getting his introduction to the business that became his lifelong career. Rick J. Lindsey quickly rose through the ranks while working in nearly every imaginable insurance industry job. As an entrepreneur, specialty lines underwriter, claims specialist, risk manager, and a licensed surplus lines broker, Rick J. Lindsey is highly skilled in all levels of leadership and execution. As he progressed on his career path, Rick J. Lindsey discovered an urgent need for insurers willing to write policies for high-risk individuals and businesses. He was frequently frustrated that he could not provide the liability protection these entities desperately needed to safeguard their assets. He also formed the belief that insurance companies acted too quickly to settle frivolous claims. Rick J. Lindsey decided to try a different approach. He started an insurance company and became the newly formed entity’s CEO. This opportunity has enabled Rick J. Lindsey to fill a void in the market and provide a valuable service to businesses, individuals, and insurance agents who write high-risk business. XINSURANCE also specializes in helping individuals and businesses who live a lifestyle or participate in activities that make them difficult for traditional carriers to insure. If you’ve been denied, non-renewed, or canceled coverage, don’t give up quite yet. Chances are XINSURANCE can help.