Study from Cleary Insurance Shows Majority of Boston Area Small Businesses Are Overexposed to Risk

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56-percent of companies fail risk assessment, operating without basic safeguards against damage caused by cyber-attacks, HR issues and other common operational realities

“This proved what we have always assumed – most business owners don’t understand how to properly assess or account for risk,” said Bill Cleary, president, Cleary Insurance.

A new study from Cleary Insurance shows that Boston area businesses are overexposed to financial and operational risks. According to the Cleary Small Business Risk Index, more than half of small businesses (55%) failed a risk assessment that explored cyber security, professional liability, employment practices and other exposures to risk. On average, Boston area small businesses scored a 57% on an index scale of 1-100, in which a score of 60% or above was considered passing.

The study probed into 19 areas of risk management and insurance. Top findings include:

  •     Only 1 in 5 respondents feel confident in evaluating the company’s insurance;
  •     1 in 4 respondents is not sure if the business is covered against sexual harassment;
  •     Over half (54%) agree that ongoing changes in HR laws and increases in cyber security issues make it hard to manage risk;
  •     46% are not sure if the business has insurance for death/disability or owners;
  •     Females report evaluating insurance every year, while males report every 2-3 years.

“This proved what we have always assumed – most business owners don’t understand how to properly assess or account for risk,” said Bill Cleary, president, Cleary Insurance. “The answer isn’t always ‘more insurance.’ There are many ways to offload, avoid or manage risk. But in order to succeed, you need to understand the basic situation, and too many business owners just don’t.”

The Boston-wide survey was digitally disseminated from July 24, 2017 to August 1, 2017 to 100 adults, all of whom identify as in a role that is intermediate or above, spanning a variety of industries including healthcare, retail, financial services, and more.

Are you covered? Take the Cleary Small Business Risk Assessment today to find out if your small business is prepared.

About Cleary Insurance
Cleary Insurance is a mid-sized, dedicated, team of insurance experts who still believe you can’t accomplish anything truly amazing in life without some risk. The key, of course, is managing that risk. We offer a broad range of innovative policies and procedures, for businesses and individuals, and customize each one to make sure they help our clients achieve their specific goals. And while we pride ourselves on the quality of our carriers, our greatest asset is our customer service and the time we take to get to know your unique situation. That way, no matter what happens, we’ve got you covered.

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Kelsey Damrad
Cercone Brown Company
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