How should a small business choose an insurance agency?

Sadly, consumers have minimal trust in insurance companies. Don’t believe me? Here’s what Accenture and Deloitte have to say about it. According to a study by Accenture, only 27% of all consumers showed trust in insurance companies, while Deloitte’s research showed even worse results with only 11% having that trust.

There are, of course, many reasons for this mistrust ranging from the hard-to-understand fine print in the disclosure to sales pitches offered instead of genuine advice. Presumably, this situation would show even more dire results if the survey was extended to owners of small businesses!

As the owner of a small business, you would agree that choosing the right insurance policy can get overwhelming at times. The process may even make you wonder if you really need insurance at all (you do!).

Obviously, insurance is important. It helps you to safeguard your business from a world of uncertainties. And, choosing an insurance agency that understands your business needs and advises you about the right policy options can help make the process a bit less painful.

To choose the right insurance agency, you must do the following[i]:

  1. Set the objective: There are many types of insurance covers available for small businesses. The sum of the premium could vary depending upon what kind of coverage you choose, i.e. are you getting a workers compensation insurance for your employees, or are you insuring your general liabilities? Before you go hunting for the right agency, it is crucial to get a sense of your objectives in place. Take a look at your possible risks and do some research on the laws that you must comply with. That will give you a taste of your possible insurance needs. This will, then, simplify the process of zeroing on the right agency.


  1. Check if the agency understands your business: Every business is different and thus, needs a customized insurance solution to meet its unique objectives. While choosing the insurance agency, ensure that they clearly understand your requirements and are flexible enough to offer you customized insurance packages. A cookie-cutter approach will clearly not work, especially if your needs are unique, so they should be willing to listen to you and your needs. Everyone wants to make the sale but check if the folks you’re talking to are also genuinely interested in helping you get ahead.


  1. Check if your objectives are met: So, you are convinced that a particular agency is offering a good bundle of options. But read all the fine print and understand what it means. Then ask yourself, does this satisfy your goals? Some agencies provide bundled policies at a discounted price. That sounds great, but do you need them all? These are questions that you must ask yourself before choosing the agency.


  1. Check the reviews: While choosing an agency, check their reviews with their existing customers. Also, look for mentions of them online and on social media. Check if they have a good reputation in the industry. Do their website and online presence show that they know their stuff? Is the general sense that they are reliable and trustworthy? Do you know if they offer prompt support even after you purchase the policy? Apart from this, also check with your peers in the industry about the agencies they have partnered with. They will give you unbiased feedback, and you will also have proof of whether they have benefitted from taking the insurance.


  1. Check credibility: Once you have found the agency that offers your kind of coverage, evaluate if their agents are knowledgeable and if they have enough experience in the industry. Verify their background; evaluate their qualifications, licenses, and certifications before committing. Get all your queries resolved and choose the agency only after you are convinced that they understand your business requirements clearly and provide the right amount of support right to you throughout. Be wise in choosing the agency even if it seems like a time-consuming process.


Why choose a small agency over big players in the industry

While these five parameters will help you choose the right insurance agency, choose an agency that moves beyond the role of an insurance provider and works as a partner to your business. That’s where a small, independent agency scores over the giants in the space.

Small businesses have a very different set of requirements from large companies. The big companies with their millions of customers and hundreds of millions of policies may not necessarily be able to offer you the kind of support that you required as you scale your business.

Small insurance agencies understand the unique needs of your business and offer customized insurance packages that are aligned with your objectives. We, for example, have been known to walk that extra mile to debunk some common myths that small business owners have about insurance policies so they can make an informed purchasing decision.

What also differentiates the small agencies from the bigger ones is the customer support they offer to the small businesses. We understand  that you want the same person to handle your policy throughout, so you don’t have to explain it all over again. You want a real person to pick up the phone when you call. You want to be able to walk in and talk to someone who understands your policy. In essence, you want to know you’re covered. We strive to provide just such a positive experience and package, so you worry less about the safety of your business and focus more on driving revenue.

We hope these tips will help you choose the right agency for your business. If you are looking for a customized insurance plan for your small business, get in touch with us. We will be happy to help.