The Hartford Analysis Highlights Key Small-Business Insurance Claim Trends and Costs

An analysis by The Hartford of over one million small-business insurance policies from 2020 to 2024 identifies water leaks and frozen pipes as among the most common claims, while fire claims represent the costliest. Water and freezing damage claims accounted for about 22% of claims with an average cost of $34,600, whereas fire claims averaged $80,000 in cost, a notable increase compared to earlier years. Over the past decade, the frequency of water damage claims rose, while theft and burglary claim patterns changed, and slip-and-fall or customer injury claims increased in both frequency and cost due to legal and settlement trends. Emerging technologies such as sensors, video monitoring, and analytics are highlighted as tools to aid small-business owners in managing these risks, alongside traditional risk mitigation measures. The Hartford emphasizes proactive risk management for exposures like water damage, fire, and customer injuries due to their impact on claims frequency and cost.