Did you know that the Insureon Small Business Institute, our educational arm, releases a report that analyzes the cost of small business insurance? It happens four times a year — one for each fiscal quarter — and the newest numbers are in.
The Small Commercial Insurance Online Pricing (SCIOP) Index report for the last quarter of 2013 is now available for you to read online. It uses data collected from the policies we write for our small-business owner clients to find out how much their insurance prices have changed since the last quarter.
We then compare our customers' trends with the trends of the commercial insurance industry at large. (Spoiler alert: our customers' prices increased about 2.25 percent while the prices of the overall commercial insurance market increased nearly 3 percent.)
The data also allows us to better understand trends across industries, states, and different types of insurance policies. Read on for the highlights.
Highlights from the Newest SCIOP Index Report
- General Liability Insurance: No pricing changes from Q3 to Q4, except for construction and contracting workers, who saw a 3 percent increase in the price of their GL policies. Analysts believe the increase was spurred by industry-wide changes related to the recovering housing market. For more information, see our General Liability Insurance Cost Analysis.
- Workers' Compensation Insurance: This type of insurance saw price increases across the board. This is not surprising, considering WC Insurance prices have been increasing since 2003.
- Business Owner's Policy: The BOP (a combination of GL and Property Insurance) saw a one to three percent price increase in Q4. In all industries, this percentage change was significantly less than Q3.
- Errors & Omissions Insurance: Overall, the pricing increase for E&O Insurance in Q4 was less than the increase seen in Q3. Construction and contracting professionals saw no change in the prices of their E and O policies. For more information, see our Professional Liability Insurance Cost Analysis.
The SCIOP Index also compares pricing changes in the four states where we write the most policies: California, Florida, New York, and Texas. For more information on these numbers, read the full report!
Why the SCIOP Index Matters for Small-Business Owners
Small businesses are the backbone of our recovering economy — they created 70 percent of all the new jobs in 2013. To keep that growth strong, more small-business owners are turning to business insurance for an extra layer of financial security.
But not all insurance providers can offer you the policies you need to protect your business at a competitive rate. Some carriers can't offer small business insurance policies at all. And when you purchase directly from a carrier, you don't have the benefit of being able to comparison shop.
That's why it's so import that insureon not only helps you secure the insurance you need to keep growing, but also that we provide information that helps you understand how your policies are priced and where those numbers come from. Check out our guide "How Much Does Small Business Insurance Cost?" for more reading.