The Hartford Reports Trends in Small-Business Insurance Claims and Risk Mitigation

The Hartford's recent analysis of small-business insurance claims from 2020 to 2024 reveals water leaks and frozen pipes as leading causes of claims, with fire claims being the most costly. Water and freezing damage account for approximately 22% of claims and average $34,600 per claim. Comparatively, over the past decade water and freezing claims increased from 15% to 20%, while fire damage claims' average cost escalated to $80,000, up significantly from adjusted previous figures. Slip, fall, and customer injury claims have also risen in both frequency and cost, influenced in part by increased litigation leading to higher settlements and verdicts. The top five most common claims include water and freezing damage, burglary and theft, slip and fall injuries, wind and hail damage, and fire. The costliest claims are led by fire, followed by vehicle accidents and slip and fall incidents. The Hartford supports over 1 million small businesses with comprehensive insurance products including general liability, business property, and income coverage, alongside workers' comp, professional liability, and data breach insurance. The company leverages AI, data analytics, and digital tools such as water sensors and monitoring cameras to aid businesses in risk mitigation and proactive claim prevention. Small-business owners are advised to implement preventative measures to reduce risks associated with water damage, theft, weather-related events, and customer injuries. The report offers valuable insights into shifting claims trends and cost factors that impact underwriting and risk management strategies in the small-business insurance segment. This latest claims data informs insurers, brokers, and risk managers on evolving exposures and highlights the importance of integrating technology in claims mitigation efforts.