Small Business, Big Opportunity: 3 Ways Agents and Brokers Can Build Success

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Small businesses are the heart of the U.S. economy, driving job creation, innovation and economic resilience. Organizations with fewer than 500 employees make up 99% of U.S. firms and nearly half of total private sector employment, and the associated insurance premiums are estimated to be over $100 billion.

Each day, these businesses face unprecedented challenges that range from cybersecurity threats and inflationary pressures to supply chain disruptions and economic uncertainties. Despite these evolving risks, most small businesses aren't properly insured - and many business owners don't fully understand the details of their coverage.

For agents and brokers, this situation presents an opportunity to grow their book of business. Here are three ways insurance professionals can attract small business clients:

1. Know Small Business Risk Trends
   Managing risks has become more challenging in recent years. Accenture's Global Risk Study 2024 found that 83% of risk professionals say that complex, interconnected risks are emerging more rapidly, while 72% say their risk management capabilities have not kept pace with the changing landscape.
   
   Small business owners have also become savvier about property and casualty risks, with pressing concerns that include:
   
   Inflation: According toBank of America's 2024 Business Owner Report, 84% of small businesses are affected by inflation, which can significantly impact operational costs and insurance needs.
   
   Cybersecurity:Smaller businesses are more at risk for sophisticated cyberattacks like social engineering. A survey co-sponsored by the U.S. Chamber of Commerce found that 60% of small enterprises see cybersecurity as the top future threat.
   
   Inclement Weather: The same study also found that 45% of small business owners were concerned about threats from climate change, with 38% adding insurance to address risks from natural disasters.
   
   It's no wonder small businesses are increasingly looking for insurance providers that offer more than just traditional coverage. Brokers and agents who understand these risks are well-positioned help small business owners address them with appropriate insurance coverage.
   
2. Harness Technology and Data
   Many small business owners are too busy managing daily operations to spend time on insurance tasks. Technology advances can enhance their experience by streamlining the insurance process with an emphasis on simplicity and speed. But while most insurance customers want digital channels for routine services, more than 30% are not satisfied with the digital channels available, according to a 2023 McKinsey survey.
   
   Working with an insurance carrier that invests in technology and offers advanced digital tools allows agents and brokers to quote business quickly, assess risk profiles efficiently and recommend customized coverage solutions. Carriers that use artificial intelligence in processing claims may also spot and process potentially fraudulent claims more quickly, meaning most insureds can be paid out faster.
   
   By leveraging technology, carriers, agents and brokers can deliver a smooth, personalized insurance experience that strengthens client relationships. Tech innovations can also enhance communication and engagement, allowing agents to provide real-time updates, personalized advice and proactive risk management strategies on their clients' preferred channels.
   
3. Tailor Coverages to Meet Business Owners' Needs
   For agents and brokers, delivering value means balancing cost with comprehensive coverage, a key factor for small businesses with tight budgets. Recent trends show declining price sensitivity, with only 18% of small business owners willing to switch carriers solely for a lower premium. Instead, there is a growing demand for customized coverages and services.
   
   Small businesses expect more than cookie-cutter insurance products: Thirty-seven percent are willing to update their insurance during the policy period to obtain tailored coverage.
   
   Effective agents and brokers can tailor insurance solutions to each business' needs, building trust and fostering long-term relationships, Pay-as-you-go Workers' Compensation coverage, for example, helps businesses manage cash flow effectively. Working with a carrier that offers creative, customized and flexible solutions allows agents and brokers to focus on client success.

Innovative Small Business Insurance Solutions, Backed By Deep Expertise

At CNA , we understand the needs of small businesses owners and the agents and brokers who help serve them. That's why we continually work hard to streamline the insurance process and make it easier to do business, from our time-saving technology solutions to our award-winning service center.

Our dedicated Small Business team offers flexible solutions and more than 300 coverage endorsements, leveraging digital tools and a streamlined process to bind quotes and work with even custom-built external platforms. The team's quoting software can issue more than half of our quoted classes in real time; others can be turned around within two hours.

Learn how CNA can help you quickly find the solutions your small business clients need, visit our Small Business page.

One or more of the CNA companies provide the products and/or services described. The information is intended to present a general overview for illustrative purposes only. Read CNA's General Disclaimer.