We're Hiring
We're Hiring
Insurance costs are the primary vehicle-related worry for small business owners, according to new survey.     
Insurance costs are the primary vehicle-related worry for small business owners
06/25/2020
Show all

Small Businesses rate insurance as their top vehicle-related concern

small business vehicle related challenges

25 June 2020

Small Businesses are crucial worldwide in providing employment, fuelling economic growth, and playing a critical role in innovation. Most of them also rely on vehicles. In the run-up to Micro-, Small and Medium-sized Enterprises (MSME) Day, we consulted small business owners in the USA and UK/Ireland to find out about their main vehicle-related worries. The results paint an interesting picture, read on.

 

The global small business contribution

Small businesses make a phenomenal contribution to the local, national and global economy. Research by Hampshire Trust Bank and the Centre for Economics and Business Research (CEBR) found that by 2020, SMEs would contribute £217bn to the UK economy. In the US, according to the Office of Advocacy, small businesses are the lifeblood of the US economy, creating two-thirds of net new jobs and driving US innovation and competitiveness. A 2018 report said small businesses account for 44 percent of U.S. economic activity.

What are the main vehicle-related concerns for Small Businesses?Survey Small Business Vehicle Challenges

We consulted over 600 Small business owners and managers in the USA and UK/Ireland to find out their main vehicle-related business challenges.

Both in the UK/Ireland and the USA, businesspeople overwhelmingly told us that insurance costs came top of their list of challenges, with 53.3% of UK/Ireland and 33.7% of USA respondents reporting this as their primary concern.

Those dealing with business vehicles will report that Commercial vehicle insurance premiums have risen steadily for several years – so its position on the worry list may not come as a big surprise.

However, it is clear insurance is more of an issue for UK/Irish companies as it grabbed over 50% of the vote, compared to the US where it was just a third. Could it be that insurance is a smaller portion of US company overheads?

Fuel and Operating costs are the next major concern, with 21.7% of UK/Ireland and 26.1% of USA businesses seeing this as an issue.

Worry about unsafe employee driving received 16.3%of UK/Ireland and 22.3% of USA votes.

And coming last in both territories was vehicle safety & security with just 8.7% of UK/Ireland and 17.9% of USA votes. The figures do suggest that vehicle security is more of a concern in the USA.

Interestingly, although the percentage of votes in each category varied by location, the order of the concern remained the same. It’s fair to say these are very real issues for small business owners the world over, despite local and national issues causing variations. Concerns that just give business owners an extra headache when they want to focus on making their core business successful.

Robust risk management is key

A quick internet search brings up a plethora of tips on reducing commercial fleet insurance costs. Whilst a company’s claims history and area of business have an impact on premiums, commentators such as Steve Blackmore, Director at Anthony Jones Insurance Brokers, are clear that risk management is an increasingly significant factor in insurance premiums.

Robust risk management includes driver management and monitoring, the use of telematics and camera technology, and driver-assist technology such as lane assist and AEB. Reporting claims quickly and in detail is another win for business owners and fleet managers.

Small businesses and vehicles

Organizations across many sectors rely on vehicles and vehicle fleets, from just a handful of vehicles to hundreds – in all shapes and sizes.

There are a range of building industry and maintenance trades relying on company vans, there are teams of sales and service executives with company cars. There are also many small HGV and truck fleets – such as recovery operators or retailers and suppliers with their own delivery vehicles. The list is endless.

Small business vehicles and CameraMatics

Robust risk management does not need to be costly – either in time or money. CameraMatics has a range of affordable and complete solutions for commercial vehicles; whether a handful of vehicles or a thousand.

Our customer Scott Ennis of A W Ennis reports that his business insurers are fully on board with the company’s use of CameraMatics. “Our insurers are delighted that we have the cameras on the vehicles and have requested we get the last couple of trucks fitted out too, which we’ll be doing very soon.” says Scott ”We’re also looking at our other vehicles – such as the cars and vans our sales reps use – as we can see the value of CameraMatics for the whole business.”

CameraMatics protects vehicles and single-handedly addresses every vehicle-related issue keeping small business owners awake at night. Onboard cameras and tracking protect against theft, give incontrovertible evidence in the event of an incident or accident, and are a proven driver training tool. CameraMatics Go gives drivers instant, paperless, and flawless accident reporting – and alerts managers. With affordable solutions and our customers on average achieving full ROI within seven months, CameraMatics is a win-win for small businesses.

 

To find out more about how CameraMatics help your business with vehicle risk management contact us or book an online demo.