Small and Midsize Businesses Optimistic Despite Tough Economy

Most small and midsize businesses feel better about their own finances than the U.S. economy, according to a recent Nationwide survey of 800 businesses.

Positive Outlook on Personal Finances

More than three out of five small companies and 51% of mid-market companies rate the economy as either ‘poor’ or ‘fair’. However, 51% of small businesses and 73% of mid-market companies rate their own financial situation as ‘good’ or ‘excellent.’

Kristina Talkowski, Nationwide’s senior vice president and head of middle market commercial lines, explained, “Business owners are more optimistic the closer you get to their specific region, industry, or business. This optimism aligns with economic indicators showing a resilient economy but also reflects challenges with high interest rates, material, and labor costs.”

Prepared for Challenges

Despite facing economic challenges, business owners are taking proactive steps to strengthen their operations and resiliency. “Owners’ optimistic views of their own business conditions stem from their preparedness for future disruptions or expansions,” Talkowski added.

Internal Challenges and Employee Benefits

Both small and mid-market businesses face internal challenges, including benefits for workers, operational optimization, and managing expenses. “Health insurance and voluntary benefits like pet insurance are crucial for attracting and retaining talent,” said Talkowski.

Business owners who increase wages must be aware of the impact on workers’ compensation premiums, which will rise as pay increases. Many are looking to optimize costs without sacrificing long-term protections for short-term savings.

Reviewing and Adjusting Insurance Policies

The survey revealed that 83% of small businesses and 77% of mid-market companies reviewed their commercial insurance policies in the past six months. Over one-third of mid-market owners either discarded a policy or lowered coverage limits during this period.

AI Investments and Workforce Challenges

Talkowski highlighted generative AI as an evolving need and challenge for businesses. “Employers need policies to govern the use of AI tools like ChatGPT to secure their business data and processes. While AI can increase efficiency, 43% of workers are concerned about its impact on job security.”

The survey showed that mid-market companies are more likely to invest in AI, with 63% of them already doing so, compared to just 27% of small businesses.

By understanding the challenges and opportunities within the current economic landscape, businesses can navigate uncertainties and continue to thrive. Skyscraper Insurance is here to support your business with tailored insurance solutions, ensuring your continued success and growth.

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Risk Management

Mitigating Financial Losses During Hurricane Season: A Skyscraper Insurance Guide

As hurricane season approaches, businesses must take proactive steps to safeguard against financial losses. At Skyscraper Insurance, we understand the unique challenges companies face in times of disaster, and we’re committed to helping our clients navigate them successfully. Here’s how your business can mitigate financial risks with the right strategies and support. 1. Diversifying Income Streams for Resilience A diversified revenue model is crucial to withstanding the disruptions caused by hurricanes. Skyscraper Insurance works with businesses to evaluate new opportunities—whether it’s launching an online platform, expanding services, or entering new markets. This ensures that if one revenue stream is impacted, others can sustain the business. 2. Comprehensive Insurance Coverage The first line of defense is making sure your insurance policies are up to date and cover potential hurricane-related damages. Skyscraper Insurance specializes in providing tailored insurance solutions, including business interruption coverage, property damage, and flood insurance, to protect our clients against catastrophic financial losses. 3. Creating a Contingency Plan with Experts In partnership with Skyscraper Insurance, businesses can develop disaster contingency plans that ensure operations continue smoothly, even in the face of supply chain delays or power outages. We help you establish backup solutions, such as alternate suppliers or inventory management systems, minimizing financial fallout. 4. Maintaining a Recovery Fund Skyscraper Insurance advises its clients to maintain a recovery fund, ensuring fast access to resources for repairs, inventory restocking, and other unforeseen costs. This proactive approach enables businesses to get back on their feet quickly without waiting for loans or insurance claims to process. 5. Leveraging Government Aid and Local Resources In the aftermath of a hurricane, government aid can be crucial for businesses. We assist our clients in navigating grants, low-interest loans, and tax breaks available through local and federal disaster relief programs, ensuring that financial recovery is swift. 6. Risk Management Strategies At Skyscraper Insurance, we provide businesses with customized risk management strategies designed to reduce vulnerabilities and protect financial stability. From evaluating potential hazards to implementing risk-transfer solutions, we help you mitigate loss before a disaster strikes. 7. Ensuring Proper Documentation for Claims Keeping detailed financial records is essential for filing accurate and timely insurance claims. We help clients organize and maintain critical documents that streamline the claims process, ensuring a quicker recovery period. Skyscraper Insurance: Your Partner in Resilience While hurricanes can be unpredictable, your business doesn’t have to face them alone. At Skyscraper Insurance, our commitment goes beyond coverage; we provide expert guidance and comprehensive risk management services that empower businesses to stay strong and resilient during hurricane season.

Safety Tips

How Natural Disasters Impact Supply Chains: Lessons from Hurricanes

Natural disasters like hurricanes wreak havoc on supply chains, causing major disruptions that can affect business operations for weeks or even months. For businesses, it’s critical to understand how these disruptions occur and to take steps to mitigate them. At Skyscraper Insurance, we help our clients navigate these challenges with smart risk management strategies that protect their bottom line. Here’s how hurricanes impact supply chains and what businesses can do to prepare. The Impact of Hurricanes on Supply Chains Hurricanes affect supply chains in several key ways: Minimizing the Impact: Strategies for Business Resilience While hurricanes are unpredictable, businesses can minimize their impact on supply chains through proactive planning: Inventory and Distribution Strategies Hurricanes often lead to localized supply shortages in the regions directly affected, but businesses that rely on global supply chains must also be wary of broader impacts. Global markets can feel the ripple effects as businesses look for alternative suppliers or routes, which might drive up costs and delay deliveries. Supporting Employees and Customers Beyond the logistical impact, hurricanes also bring safety risks to employees and customers. Ensure that safety plans are in place, including clear evacuation procedures and communication strategies. For employees working in distribution or warehouses, it’s essential to prioritize their well-being by closing operations in unsafe conditions and providing post-storm recovery support. Final Thoughts Supply chains are the backbone of many businesses, but they are also vulnerable to the unpredictable forces of nature. By diversifying suppliers, investing in technology, and planning ahead, businesses can minimize the disruption caused by hurricanes and other natural disasters. At Skyscraper Insurance, we’re here to help our clients protect their supply chains and navigate the challenges posed by these extreme events.

Small and Midsize Businesses Optimistic Despite Tough Economy