Water Damage, Burglary Among Top Small-Business Claims: The Hartford Data

The Hartford, a leading small-business insurer, has released an analysis of claims from its portfolio spanning 2020 to 2024, highlighting the most frequent and costly claims for small businesses. Water damage, including leaks and frozen pipes, consistently ranks as one of the top claims, accounting for approximately 22% of small-business claims over the past five years. These claims are also notably expensive, averaging $34,600 per incident. The Hartford’s data shows a significant increase in the frequency of water and freezing damage claims over a decade, rising from 15% in 2015 to 20% in 2025, indicating growing exposure to such risks among small businesses. Wind and hail damage claims have remained steady at around 15% over the same period, primarily involving structural damages such as roofing and signage. Fire damage, while less frequent, emerged as the most expensive category, with average claim costs increasing substantially from $35,000 in 2015 to $80,000 in 2025 after adjusting for inflation. Slip, fall, and customer injury claims have also grown both in volume and average cost, influenced partly by increased litigation and higher settlements. The Hartford's top five most common claims now include water/freezing damage, burglary and theft, slip/fall/customer injury, wind and hail, and fire damage. From a cost perspective, the leading claims are fire damage, vehicle accidents, slip and fall incidents, water and freezing damage, and reputational harm. The Hartford supports approximately 1 million small businesses with a range of insurance products such as the Spectrum Business Owner’s policy, which bundles general liability, property, and business-income coverage alongside optional add-ons like workers’ compensation and professional liability. The insurer promotes the adoption of smart risk-mitigation technologies, including water sensors and video surveillance, to help small-business owners proactively reduce the likelihood and impact of claims. Insights from this analysis are intended to inform both insurance professionals and small-business owners about evolving risk patterns and the importance of tailored preventative measures to manage property and liability exposures effectively. The Hartford has maintained a dedicated small-business insurance unit for over 40 years, leveraging digital tools, data analytics, and artificial intelligence to enhance underwriting and claims management processes. This extensive claims data analysis aids in benchmarking emerging trends and cost drivers within the small-business insurance sector, offering crucial guidance for underwriting, risk management, and loss prevention strategies.