Solopreneurs – those who operate their businesses alone – are feeling the impact of challenging economic conditions, rising rates, and high inflation, according to a new survey from TD Insurance.
The study, which polled over 500 Canadian small business owners, found that only 55% of solopreneurs felt confident in the future of their business, compared to 70% of entrepreneurs with one or more employees.
Despite their faltering confidence, solopreneurs still need to take the necessary steps to protect their businesses, as they were found to be the least likely among small businesses to have insurance.
The TD Insurance survey noted that only 33% of solopreneurs indicated their businesses are insured. In comparison, 61% of small businesses with one or more employees said they have insurance protection.
For small businesses without insurance, 41% claimed they don’t need it for their industry or business. Solopreneurs, in particular, cited not feeling the need for coverage, given their sole employee status.
On the other hand, the small businesses that do have insurance expressed high levels of satisfaction and confidence in their coverage, with 86% agreeing that their business is well protected.
Additionally, 59% of small business owners said they strongly understand insurance specific to their businesses. This level of understanding was significantly higher among those with insurance coverage (75%) than those without (41%).
The survey also indicated that solopreneurs were likelier to admit a weak understanding of different insurance coverage options (41%) and were less likely to have consulted with a licensed insurance advisor (63%).
Moreover, 57% of small business owners said they prefer using online tools for quotes before speaking with an advisor.
Commenting on the survey’s findings, Tony Menon, senior vice president, general insurance, emphasized the significance of insurance for all small business owners, regardless of their business’s size.
“Small businesses with and without employees can be vulnerable to a number of events that could lead to financial losses like unexpected business closure, theft, property damage, personal injury, and liability,” Menon said.
“With the right insurance coverage, small business owners can feel confident that their business is protected against unexpected costs and liability.”
Statistics Canada classifies 98% of businesses in the country as small businesses, with over three million non-employer businesses nationwide.
TD Insurance has been rolling out services to target this market, recently introducing a digital quoter tool that provides small business owners easy access to customized quotes and insurance assessments.
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