Water Damage, Theft Top List of Small-Business Insurance Claims in Hartford Report

A new report from The Hartford highlights the most common and costliest claims affecting small businesses from 2020 to 2024. Based on an analysis of over one million property and liability policies, water and freezing damage now account for 22% of all claims—up from 15% a decade ago. Burglary and theft remain prevalent, while slip-and-fall claims have grown in frequency and cost, reflecting increased litigation and legal system pressures.

For insurance claims adjusters, this trend data offers critical insights into emerging risk areas and loss trends. The sharp rise in fire claim costs—from $47,600 (adjusted for inflation) in 2015 to $80,000 in 2025—underscores the growing severity of property losses. Adjusters must also navigate increasing reputational harm and vehicle accident claims, which now rank among the top five most expensive.

In addition to identifying loss trends, the report outlines practical mitigation strategies. These range from installing water sensors and surveillance systems to improving exterior lighting and performing regular maintenance checks. Claims professionals can leverage these insights to guide policyholder education, streamline investigations, and support loss prevention efforts.

By understanding how small-business claim trends are shifting and which claims generate the highest costs, adjusters can better prioritize resources, anticipate documentation needs, and adapt to changes in risk exposure across regions and industries.