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Turbulent times ahead for small businesses prompt calls for insurance review

Mar 2, 2023 · 4 minutes to read

An expert is calling for business owners to consider reviewing their insurance coverage as key indicators predict turbulent times ahead for many small businesses.

Portrait of a business owner using computer and financial statements.

With millions of new businesses entering the market for the first time and many others changing their circumstances due to the shifting economic conditions, SMB insurance expert Pavel Yurkov says it’s important for business owners to ensure they have adequate coverage.

“Small businesses face many risks in their day-to-day activities and business insurance is there just in case things go wrong,” says Mr. Yurkov, who is VP of Technology and Operations at SMB insurance service BizInsure.

“With the economy predicted to be a bumpy ride, it’s critical that small businesses update their coverage if there is a change in circumstances.”

A tale of two economies

It is a tale of two economies with conflicting narratives making it a confusing environment for small businesses to operate in.

On the one hand, the US labor market appears strong with small business applications reaching a high of 10.5 million since the Biden administration took control, according to the Small Business Administration (SBA) – the most in any two-year period in the nation’s history.

Coupled with the fact that inflation is quickly declining, wages are continuing to rise, and there are more job openings than workers, and you may be forgiven for thinking the economy was booming.

Yet there is that pesky recession which everyone seems to be talking about… and for good reason.

The Conference Board’s Leading Economic Index, which consolidates several key economic indicators, declined in December for the tenth month in a row.

Indicators such as weaker manufacturing orders, lower consumer expectations, and a shorter average workweek for employees dragged the closely-watched index down, falling by 4.2% in six months – the steepest decline since the start of the pandemic.

A rise in rates

While these indicators are often bad for business, they don’t usually hit home to the average small business owner in a direct way.

But what will hurt – and has been hurting – businesses like Billy’s corner store or Martha’s bookkeeping venture, is the rise in interest rates. Close to 40% of small businesses take out a business loan to cover expenses and grow their operations.

As explained in this Guardian article, the average prime interest rate nearly doubled from 3.25% in March to 7% in December last year.

Given that prime rates are usually reserved for the largest of companies, the article found small businesses are realistically looking at interest rates at around 10%-11%, whereas only months ago, they were around 7%.

In real terms, for a $1 million loan the interest cost would have increased from $70,000 to $110,000.

That extra $40,000 could’ve paid a worker or repaired some critical equipment. Now, it goes to the bank.

With large firms laying off workers in droves and the Fed expected to further increase interest rates, all signs point to an economy heading towards negative growth.

When to consider reviewing your insurance

The small business landscape changed drastically when the last recession hit the economy in 2008; fewer businesses were started, and many had to scale back their operations and lay off workers.

With so much change again expected in the economy, it may be difficult for small business owners to know if they need to review their insurance.

Mr. Yurkov says that while it depends on the individual business’ situation, there are a few circumstances where an insurance check may be in order.

Firstly, he says, if your revenue is down, or you had to lay off employees or relocate to a smaller office, you may actually end up saving money by reviewing your insurance as you may have less risk to cover.

“Conversely, if you’ve bucked the trend and your business has grown, then it’s important to consider whether you currently have enough coverage to protect you from the potential risks.”

Mr. Yurkov also urges new small business owners to consider what they would do if an insurance claim was made against them.

“Business insurance is there to give you peace of mind and reduce the stress of worrying about paying for claims out-of-pocket – but it’s not a set-and-forget product,” he says.

“If your business circumstances shift and your risk changes then your policy may need to change with it.”

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BizInsure has really come through for me on some really hard to place risks. Andrew takes the time to understand the risk and work through how we can make it work, rather than looking for ways to say no. Thank you for your help!
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18:06 16 Mar 23
Very helpful and explanatory on the policy line of the policy
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17:30 14 Mar 23
Worked with Tevin. Amazing customer service. Was very patient with me in figuring out the best insurance coverage for business. Thanks Tevin for making it easy.
Faisal O.
16:23 14 Mar 23
No complaints, Always a fast response when a need arises.
Dan F.
13:56 10 Mar 23
Very good information patience was shown. Much help from Kaled, satisfied with the amount of insurance and good coverage. Affordable is what you need with starting a small business until you grow. Old saying is go as you grow.
Jacquelynn W.
21:53 20 Jan 23
Professionals at what they do! easy to navigate and very good people to lead to to the best coverage!
Magnifier 2.
20:37 17 Jan 23
I have been shopping for business liability insurance for several months. I am happy to share that BizInsure ranked #1! The representatives were polite, patient, and empathetic. They accomplished what most companies struggle with achieving: they did what they said they were going to do, they were on time, and they had empathy. They delivered a policy for 25% less than the closest competetor, and even included $50k of cyber security at no additional cost! I only write reviews when I receive exceptional experiences- highly revommended; keep up the great service BizInsure!P.S. I own a professional referral service in Hawai'i and I am going to see if BizInsure offers an affiliate program.Aloha!
John S.
05:51 23 Nov 22
They respond quickly and give you quotes immediately ...
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23:55 09 Nov 22
The agent that I spoke to was very experienced and could tell that I was new at this and was very understanding and took the time to explain everything to me.
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00:04 15 Oct 22
Easy to work with and very responsive. Glad to have them as my broker.
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We’re very happy with BiInsured LLC. VERY AFFORDABLE
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Jasmine Q was on the spot professional, she knew where to direct me and explain to me my concerns and request; she delivered my personal information within minutes of me asking policy questions.That young lady is a true ROCK STAT!!!
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23:09 15 Aug 22
For a small non-profit, the package I was given was affordable. The representative was polite, patient, understanding, and knowledgeable.
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18:06 15 Aug 22
Asked for a specific venue to be place on our certificate of insurance and it was done within one business day. Yay! Bizinsure!
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The process was fast and easy and the professional staff was very knowledgeable with any questions that I had and ready to help
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06:40 31 Mar 22
Friendly agents. Timely replies. Fair pricing. This is a good fit for my business! Thank you, Noah, for all your help.
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Noa made sure I had all the information I needed for a first time business owner . He helped me understand what I needed to secure a quality policy and he was super helpful when explaining how the policy would serve its purpose to my company. I was very satisfied and had an Awesome experience, I think people like that make the company look good!
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I was in need of WC, GL and PL coverages for my business and was able to shop, discuss, confirm and purchase all the coverages in two days! This was a great experience, especially when "Time is Money". Noah Bowman was very professional and knowledgeable. Thanks!
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15:42 23 Sep 21
MOVING FORWARD, I WILL BE SENDING ALL OF MY BUSINESS TO THIS COMPANY !!!! Incredible customer service!!! Thanks
THEODORE W.
19:49 09 Sep 21
Their representative clearly explained different kinds of policies to help me select the one appropriate for my needs and then helped me enroll by phone painlessly. By the end of the call, I had a policy in place.
Dissent D.
22:21 02 Sep 21
Eugene was Awesome!!!!
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Excellent solution for writers and authors professional liability policy as well as coverage for copyright and trademark infringement. Service was prompt and excellent.
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Done in less than an hour!
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00:30 02 Jun 21
Efficient, and great value. The agent was able to give us a quote and a new policy in a short period of time. Thank you
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20:30 24 May 21
I had a great experiencing obtaining several of my insurance needs as a landscaping company here in Northern Colorado. BizInsure's team took care of my needs and was very responsive to help with paperwork needed to secure a potential client account!
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Very efficient they were able to help me out with my request promptly....highly recommend this companyI am very happy to have them
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18:50 26 Apr 21
I need a help getting errors and omissions insurance along with general liability. Jose was very friendly informative and was very patient with me during the process. He found me some of the best rates for the coverage that I needed. Highly recommend
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19:51 20 Apr 21
I had numerous conversations with several business insurance agents over a month's time. I also had several conversations confirming the policy inclusion/exclusions and asked many questions. My BizInsure agent was professional, knowledgeable and most important—detail oriented. Even after having an initial conversation a month earlier he knew and *remembered* all my personal/professional insurance needs. When I asked for additional information on the third call he was able to provide me with details very quickly. He was also VERY patient. That is a big plus in my opinion. It illustrated a high level of respect for my needs. I also found when I called back and asked to talk with the initial agent, the person who answered the call was able to get in contact quickly and my agent responded and returned the call within 5-10 minutes. The transaction was smooth, and I think it's a good sign should I ever need to make a claim. I highly recommend BizInsure.
Poetic F.
21:00 07 Apr 21
The rep was extremely helpful actually lowered my quote and made sure I was covered to fit my needs with my growing business! 5star!!
Franklin B.
19:04 16 Mar 21
Excellent service and prices.
Cassiopée V L.
23:13 09 Mar 21
Mr. Daniel Scott was very responsive to my professional needs.
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17:38 18 Feb 21
Eugene deserves a raise! First time purchasing insurance and he made the process so simple for me. His patience and attention to detail left me feeling confident in my decision to choose BizInsure. Gracias Eugene!
Esined P.
23:32 17 Feb 21
The customer service provided by Jose was outstanding. He explained everything in a very clear/logical way and answered all of my questions. After providing all the information to obtain general liability insurance, Jose sent me the declaration page of the insurance for review. All of the information matched what I provided over the phone and there were no typos. The next day I called back to purchase the insurance which was easy and fast. Overall, my experience with BizInsure including the customer service by Jose exceeded my expectations.
Joe W.
03:29 12 Dec 20
Hiscox/BizInsure made getting Liability Insurance very easy and reasonable.I expected it to be a long and complicated process and it was a nice surprise that they made it so uncomplicated. Thank you. Lisa
Lisa W.
21:51 24 Nov 20
Eugene was incredible. I called 4 other brokers before him who were impossible to get any help.
rhonda H.
23:26 12 Nov 20
Very quick to get in touch with you and good with follow up. Had some trouble retrieving my quote to log into my account initially but Daniel assisted me and the changes were made to get me into my account. Great value for the money.
Fran S.
16:34 20 Sep 20
Very happy to be insured with this company. Professional, Timely, very helpful. Thank you Juan, you made it so much easier for me to understand.
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19:55 15 Sep 20
This company responded when I needed them to respond while facing a deadline. They are an excellent choice for business Insurance.
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01:52 12 Sep 20
Jose Quintero took such great care of me and was very patient explained everything I did not understand and got me set up quickly. Fabulous customer service
Christina R.
02:41 27 Aug 20
I can't say enough good things about Daniel Santos kind and effective communication skills as an insurance agent. Daniel was so pleasant, friendly and efficient with helping me obtain insurance as a teacher. If I were to give Daniel a grade, he has earned an At . He made the process easy to understand, it was far easier than what I anticipated. Nancy S.
Nancy S.
00:47 26 Aug 20
I was in need of professional liability insurance for my sole proprietorship. A friend referred me. Everythng was quick and simple and AFFORDABLE!
hope J.
20:31 25 Aug 20
If you need Private Home Care Provider insurance for your company, BizInsure, LLC can get it for you!
Pamela C.
16:45 24 Aug 20
Great and fast service!!!! The representative was very professional!!!!
Tanya S.
19:51 14 Jul 20
I was tryi9ng to find commercial liability insurance for my new comp-any and BizInsure was easy to use and very affordable which is great for me as a new business.
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19:01 14 Jul 20
Great service insurance prices are great for professionals looking to get insurance for businesses....
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22:34 22 Jun 20
The provided very professional service and made the process easy.
Paul R.
21:51 04 Jun 20
Bradley Hoyle from the Biz Insure team was excellent to work with. Everything was quick and smooth. Great service, much appreciated!
Kristene S.
02:03 04 Jun 20
Anthony Spencer was great!! Very quick response time!! He was very Professional! I would suggest him because he helped me find a affordable rate and explained all the technicalities..
Fre H.
16:38 28 May 20
I was referred to Bizinsure by a industry trade group that I am a member of. It was easy to get a quote online and then received excellent customer service from Bradley H. to complete my policy purchase over the phone. I have shared this company information now with other business owners for their policy needs.
Dawn T.
22:11 08 May 20
This company was very precise with explaining services and made sure I chose the right business insurance coverage, great customer service at purchasing.
Nekeisha B.
01:30 05 May 20
Amazing
Jasmine Q
14:31 02 Dec 19
Trish is the most patient, professional and understanding insurance agent I’ve ever worked with. Trish has taken care of all my business insurance needs for the last couple years. I am really happy that I found an insurance agent that I know will take care of me & all of my concerns. I feel like a valued customer & I appreciate the great customer service that I get every time!!THANK YOU!
Dr. Youssef C. A.
17:21 14 Nov 18
Tricia helped me get insurance for my business. The task of obtaining a quote was really starting to frustrate me until I was referred to BizInsure through a different agency. Tricia got me a quote fast, and even took a down payment over the phone and issued the proof of insurance the same day. a+ service, would do it again in a heartbeat!! Thank you!!
Josh M.
18:07 22 Jun 18
BizInsure was a great find! I did not have to fill out applications, and Tricia was able to quote and bind business insurance for me within half an hour.
Allison Y.
17:28 21 Jun 18
Started doing business again and needed a policy fast. Ramez was reasonable, helpful and the rates are OK. Buyer beware? Sure, for me it turned out OK this time. Worth a call.
Mark W.
23:42 13 Nov 17
Great customer service. I've been very inpressed with my dedicated representative that had helped me navegate my insurence needs. Thanks so much!
Graham B.
22:12 23 Jun 17
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