Small Business Owners: Do You Really Know Your Insurance Coverage?

A comprehensive survey by biBERK, part of Berkshire Hathaway’s suite of business solutions, has uncovered a troubling gap between how seriously business owners think they take insurance and how they actually manage it.

The Paradox: Awareness Without Action

Here’s what stands out from the data: nearly 90% of small business owners surveyed recognize that adequate commercial insurance is very or somewhat important. Yet when you dig deeper, the picture gets messier.

More than 18% of these same owners admitted they don’t review their policies annually—meaning they could be significantly underprotected without even realizing it. Even more striking: less than 43% have adjusted their policy limits recently, a concerning oversight given today’s inflationary environment.

Why This Actually Matters to Your Bottom Line

The stakes here are real. Asset values increase over time, and lawsuit awards trend upward with inflation. If a liability claim or loss exceeds your policy limits, you’re not walking away clean—that gap comes straight out of your company’s operating budget or reserves.

For most small businesses, this isn’t a minor inconvenience. A judgment that surpasses your coverage limit could mean paying tens of thousands of dollars out of pocket. That’s often the difference between staying afloat and going under.

The Knowledge Gap Problem

biBERK President Peter Shelley summarized the real issue: while many owners understand insurance matters, significant gaps remain in their actual knowledge. That disconnect translates directly into coverage gaps—and coverage gaps are expensive.

The survey reinforces why education remains critical in this space. From understanding policy mechanics to calculating appropriate coverage limits in an inflationary market, most business owners could benefit from clearer guidance. That’s exactly the kind of support resources like biberk.com aim to provide through educational materials and expert consultation.

What You Should Do Right Now

If you’re a small business owner, this data should prompt a simple action: review your current policies. Check when coverage limits were last adjusted, consider whether they still align with your current asset values and industry risks, and have an honest conversation with an insurance professional about your actual exposure.

The survey’s core message is straightforward—business owners care about protection, but they need better tools and knowledge to act on that concern effectively.