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New data suggests $4.5 trillion in small business revenue is jeopardized by a lack of insurance.
CHICAGO, May 12, 2014 /PRNewswire/ -- Late last month, the U.S. Census Bureau released nonemployer data for 2012, revealing that the country is currently home to 22.7 million single-person businesses that generate more than $1 trillion in revenue. Businesses with fewer than 10 employees generate an additional $5.1 trillion, meaning that small businesses contribute more than $6 trillion to the U.S. economy, a sizable portion of the GDP ($16.2 trillion in 2012).
These numbers reinforce the important role small businesses are playing in the country's ongoing economic recovery, but they also reveal a potentially disastrous weakness in overall U.S. economic viability. According to Insurance Journal, three quarters of U.S. businesses may be underinsured by 40 percent or more. And the New York Insurance Information Institute reports that as many as 40 percent of small businesses may even be completely uninsured.
"This is a classic case of 'For want of a nail, a kingdom was lost,'" said Ted Devine, CEO of insureon, the nation's leading online provider of small business insurance. "The starting cost of a Business Owner's Policy is less than $40 per month, and it provides $1 million in coverage for the liability and property events that most commonly affect small businesses."
Devine also noted that analysts estimate 40 percent of small businesses never reopen after being struck by disaster – often because they lack the financial resources to recover from unexpected setbacks. He emphasized that a relatively small investment in basic business insurance can make the difference between survival and bankruptcy for most small businesses.
Business Owner's Policy benefits cover the cost of many third-party lawsuits and replacement or repair of damaged business equipment. Business owners interested in learning more about the Business Owner's Policy can find information at insureon.com/products/business-owner-policy/.
Insureon provides coverage for the fast-growing small and micro business sector, which includes freelancers, contractors, and businesses with 10 or fewer employees. Free quotes for Business Owner's Policies and other types of insurance are available at www.insureon.com.
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