The Pressing Need for Small Business Risk Management and Risk Transfer

By: George Williams | May 28, 2025

George Williams is the head of Nationwide’s Small Commercial Insurance business. He has over 30 years of experience leading insurance P&Ls, products, operations, claims and technology across global markets. Prior to joining Nationwide in 2021, Mr. Williams held senior leadership roles at Guy Carpenter and AIG. He has a B.A. in Economics from Bucknell University and an MBA in Finance from the NYU Stern School of Business.

Topics: Risk Insider

Small business owners continue to face an evolving landscape of challenges – from economic uncertainty and supply chain disruption to labor shortages and rising litigation costs. And while many are doing their best to adapt, a recent survey by Nationwide found that about one in three small business owners do not feel adequately protected against the risks that threaten their livelihood.

These pressures are particularly acute in industries like food service, where operators are navigating thin margins, high turnover and shifting customer preferences. A local restaurant owner, for example, may be too focused on keeping staff scheduled and shelves stocked to realize their cyber liability policy is outdated or that gaps in workers’ compensation coverage could leave the business exposed if an employee is injured.

In this climate, the role of the insurance industry must evolve from policy provider to strategic advisor.

Business Owners See Difficulties Ahead

According to our research, small business owners are increasingly concerned about the road ahead. The top risks cited over the next two years include rising costs, economic and regulatory unpredictability, fluctuating customer demand and ongoing workforce disruptions.

Four in 10 said managing supply chain instability is now a top priority, an issue that could become even more complex as tariffs and global volatility affect the cost and availability of key materials.

What makes these risks more difficult to manage is that many entrepreneurs lack the time or expertise to proactively address them. They’re focused on keeping their doors open, making expert, personalized guidance from insurance professionals all the more critical.

Staying ahead of these challenges requires more than agility; it demands forward- looking planning, tailored protection and trusted partnerships that help business owners better understand the risks that could derail their progress.

A Trusted Role in Uncertain Waters

The insurance industry is uniquely positioned to help small businesses navigate uncertainty – not just through coverage, but by helping them predict and prevent risks through education and loss avoidance.

Regular reviews of coverage can uncover gaps that often arise during periods of growth, staff changes or new service offerings. For example, when a business expands locations or takes on seasonal contractors, policies may need to be adjusted to match
new exposures.

Equally important is simplifying the experience. Many small business owners are overwhelmed by jargon, forms and fine print. Agents and carriers who can simplify the insurance experience and communicate in plain terms help foster trust and enable smarter decisions.

Beyond that, insurers can play a role in shifting mindsets from short-term cost-cutting to long-term resilience. Another Nationwide survey found that 26% of commercial property owners knowingly carry inadequate insurance for severe weather events, despite the growing threat of natural disasters. FEMA data shows that one in four businesses never reopen after a major disaster, underscoring the need to position insurance as a tool for continuity, not just compliance.

Meeting Businesses Where They Are

To better serve today’s small business environment, insurers are rethinking how they support clients and agents alike. One strategy gaining traction is greater flexibility – offering coverage options that are tailored to different industries and business models instead of applying a one-size-fits-all approach.

A small HVAC contractor, for instance, may need coverage that adapts to seasonal workload spikes, includes protection for tools and equipment in transit, and accounts for subcontractor liability. Standard packages don’t always address these nuances, which is why carriers must design products that reflect real-world complexity.

Education is another area where insurers can make a difference. While most small businesses say they maintain some kind of safety budget, more than half report lacking a fleet safety program and a third don’t have a business continuity plan. By encouraging actions like installing security systems, updating business continuity and safety protocols, and training staff, insurers can help small businesses reduce the likelihood of claims and build longer-term resilience.

Finally, technology-enabled risk management solutions are making it easier to bring a predict and prevent mindset to life. From telematics and dashcams that enhance fleet safety and vehicle maintenance, to water leak sensors and shutoff devices that can prevent costly flood damage, to wearable devices that monitor worker fatigue or common injury risks – these tools can empower small businesses to reduce risk in real time.

By offering or recommending such solutions, carriers and agents can move beyond binding and claims support to become proactive partners in business growth and success.

Building Protection for the Future

Helping small businesses thrive requires more than policies; it takes a shared commitment to protection, partnership and affordability. As risks grow more complex, the insurance industry must be responsive to emerging needs and proactive in
delivering meaningful value.

That means offering smart, industry-specific coverage, investing in digital tools to improve the buying and servicing experience, and helping business owners close protection gaps through guidance and resources. It also means recognizing the financial
pressures many small business owners face and working to balance protection with cost in a sustainable way.

By building strong relationships between insurers, agents and business owners, the industry can help ensure that Main Street businesses are not just surviving but set up to succeed for the long haul. &

Building a Successful Telematics Program: Keys to Implementation, Benefits, and Vendor Selection

As telematics technology continues to evolve, fleet managers face the challenge of implementing effective programs that enhance safety, reduce costs, and engage drivers. Creating a successful telematics strategy requires more than just installing devices—it demands a thoughtful approach to safety culture, technology selection, and data utilization.

By: The Hartford | June 2, 2025

What Are the Basic Elements of Building a Successful Telematics Program?

Implementing a successful telematics program requires several foundational elements that work together to create meaningful results. According to professionals at The Hartford, the approach should be comprehensive and people-focused.

“Building a successful telematics program involves several key components centered around using data safely and transparently. It’s essential to view telematics as a people effort powered by technology, not just a technology effort,” said Ashley Valour, Auto Product Director for Middle and Large Business at The Hartford.

Before launching a telematics initiative, organizations need to establish clear objectives. “When it comes to implementing a successful telematics program, there are several key factors to consider. First and foremost, it’s essential to have a clear understanding of your goals and objectives. What do you hope to achieve with the program? Is it to improve driver safety, reduce costs, or both?” Valour explained.

Ashley Valour, Auto Product Director for Middle and Large Business, The Hartford

Understanding legal requirements is another critical preliminary step. “Before starting, it’s crucial to understand state privacy laws and have an implementation plan in place,” Valour said. “Additionally, basic fleet management controls such as driver selection, training, placement, and supervision should be established, as the telematics program will build upon these fundamentals.”

Driver engagement represents one of the most crucial elements of a successful program. “The most common concern we hear from drivers is around data privacy – the worry about ‘big brother’ surveillance. It’s crucial to create a culture of safety and ensure that drivers understand the goal is to get them home safely,” Valour noted.

To address these concerns, transparency is essential. “Getting buy-in from drivers is important. Explain why you’re implementing the technology, especially if cameras are involved. Give them the chance to interact with the technology before going live and clarify what triggers camera recordings and who has access to that footage,” Valour advised.

Creating a supportive environment where telematics is viewed as a safety tool rather than a surveillance mechanism helps drive program success. “Creating a culture of transparency and safety is vital. Fostering a team environment where everyone is committed to getting their coworkers home safely and protecting the brand is key,” Valour said.

What Are Some of the Ancillary Benefits A Telematics Program Might Produce?

While safety improvements and accident reduction are primary goals of telematics programs, organizations often discover numerous additional benefits that extend beyond insurance considerations.

“Telematics provides value to customers even before the insurance relationship comes into play. Customers purchase telematics independently for worker engagement, brand protection, fuel economy savings, and maintenance savings, gaining direct benefits prior to insurance considerations,” said David Turner, AVP Innovation and Risk Solutions – IoT, Technology & Data at The Hartford.

One significant ancillary benefit is improved driver retention in an industry where qualified drivers are increasingly difficult to find and keep. “Telematics can also contribute to driver retention. Customers can build programs around driver rewards, ensuring their safest drivers are the most rewarded. This is something customers can implement on their own,” Turner explained.

The technology can also serve as protection for drivers who might otherwise be blamed for incidents they didn’t cause. “It’s also important to highlight how video can exonerate drivers in case of incidents and celebrate accident preventions that happen as a result of the technology. When drivers see the value and understand that it can keep them safe, it can go a long way in enhancing employee engagement and retention,” Valour said.

Beyond operational benefits, telematics programs can strengthen the relationship between insurers and their clients. “Building trust between an insurance carrier and a customer through initiatives like telematics can have far-reaching benefits beyond the specific program. When customers see positive results and understand the value of such initiatives, it builds confidence in the carrier’s ability to deliver effective solutions,” Turner noted.

This trust creates a foundation for broader risk management collaboration. “This increased trust can lead to greater openness and engagement from customers in other areas of loss prevention and safety. As the relationship strengthens, customers are more likely to participate in and benefit from additional initiatives proposed by the carrier, creating a virtuous cycle of trust and mutual success,” Turner added.

The technology landscape for telematics continues to expand, offering increasingly sophisticated capabilities. “The network of telematics has expanded significantly beyond the basic ABCs (acceleration, braking, and cornering). New capabilities include equipment tracking, trailer tracking and monitoring, environmental monitoring, and theft prevention,” Turner explained.

What is The Hartford Bringing to the Table in Terms of Experience and Vendor Relationships?

David Turner, AVP Innovation and Risk Solutions – IoT, Technology & Data, The Hartford

Navigating the complex telematics marketplace can be challenging for fleet managers. The Hartford has developed experience and partnerships to help clients select and implement the right solutions for their specific needs.

“With the numerous telematics options available in the market, customers face a wide array of choices every day. At The Hartford, we have set up a program partnering with a network of proven telematics providers. We can help customers navigate these options to find the best fit for their needs and support them after they make their final decision,” Turner said.

These partnerships deliver tangible benefits to clients beyond just technology recommendations. “Our relationships with these vendors offer customers great benefits, such as referral discounts and services that focus on increasing their value,” Turner explained.

The Hartford recognizes that telematics solutions aren’t one-size-fits-all and works with clients to identify the most appropriate technology for their specific situation. “When rightsizing the solution, some companies may save money with bring-your-own-device models or cell phone-based solutions, while others may benefit more from a fully integrated device and camera solution. It’s crucial not to assume that the cheapest option is the most valuable, as the best programs are easy to manage and provide actionable insights for the fleet, regardless of the company’s size,” Turner noted.

Beyond vendor selection, The Hartford provides guidance to help clients maximize their telematics investment. “We take it a step further by bringing our trained risk engineering team to help clients get the most from their telematics investment. Additionally, we have several emerging features that will provide valuable support from a claims perspective when it matters most,” Turner said.

The company’s approach emphasizes the importance of viewing telematics as a strategic investment rather than just another expense. “Telematics should be viewed as a capability and a tool rather than just another expense. Like purchasing a new truck, trailer, or real estate, telematics becomes a core asset for value creation when used effectively,” Turner explained.

For The Hartford, successful telematics implementation is about creating partnerships focused on client success. “At The Hartford, we proudly partner with brokers who share our focus on safety, service, and care for the customer, regardless of the client’s size,” Turner concluded.

To learn more about telematics and other IoT technologies, visit www.thehartford.com/loss-control/iot-innovation-lab.

The information provided in these materials is intended to be general and advisory in nature. It shall not be considered legal advice. The Hartford does not warrant that the implementation of any view or recommendation contained herein will: (i) result in the elimination of any unsafe conditions at your business locations or with respect to your business operations; or (ii) be an appropriate legal or business practice. The Hartford assumes no responsibility for the control or correction of hazards or legal compliance with respect to your business practices, and the views and recommendations contained herein shall not constitute our undertaking, on your behalf or for the benefit of others, to determine or warrant that your business premises, locations or operations are safe or healthful, or are in compliance with any law, rule or regulation. Readers seeking to resolve specific safety, legal or business issues or concerns related to the information provided in these materials should consult their safety consultant, attorney or business advisors. All information and representations contained herein are as of May 2025.

The Hartford Financial Services Group, Inc., (NYSE: HIG) operates through its subsidiaries, including underwriting company Hartford Fire Insurance Company, under the brand name, The Hartford®, and is headquartered at One Hartford Plaza, Hartford, CT 06155. For additional details, please read The Hartford’s legal notice at www.TheHartford.com. © May 2025 The Hartford.

This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with The Hartford. The editorial staff of Risk & Insurance had no role in its preparation.

The Hartford is a leader in property and casualty insurance, group benefits and mutual funds. With more than 200 years of expertise, The Hartford is widely recognized for its service excellence, sustainability practices, trust and integrity.