Insurance buying tips for small business owners. | | PropertyCasualty360

Small businesses that visit shipping websites may not understand all the risks and responsibilities they will have to deal with and their concerns, let alone how to manage their own risks. (Photo: Chaay_tee/Adobe Stock)

Buying insurance can be confusing and stressful for small businesses, but they all have to invest in it at some point. Encouraged by the purchase of a new home or delivery vehicle, the addition of employees, customer demand for certain products, or simply starting a business; Whatever the cause, small businesses buy at least once.

Often their journey begins with an online or phone search. However, small businesses that visit shipping websites may not understand the risks and responsibilities they may have to deal with, let alone how to manage their own risks. The challenge for carriers looking to transform digital consumers into happy policyholders is to manage what matters most, clarify their risks and needs, and help them make the right decisions.

For carriers, the right strategy in the digital journey is often the difference between winning new business or falling by the wayside, regardless of whether the small business ends up buying insurance online or offline. Our company has studied several digital strategies and identified four best practices carriers can adopt to better serve small businesses:

  • Make sure that the small business buyer sees what is relevant to their business and their challenges. The contributions that small businesses must or should want to take care of vary from industry to industry. For example, an insurance agent only interferes with the independent writer if he advises on the protection of a large purchase, but this advice is necessary to cooperate with the owner of the restaurant. Business requirements also vary widely in terms of complexity – for example, does the business have employees? What kind of customers are served? Is a professional license required? What kind of tools are used? Is the business domestic or international?

The Hartford’s business insurance the landing page offers several options for the requirements, including a three-way tool to help users “Find the right option for your business.” The tool uses independent logic and a comprehensive list of options to help users identify their companies efficiently and accurately. Entering the first few letters of the word “restaurant,” for example, provides options such as Fast-Food Restaurant, Full-Service Restaurant, and Restaurant Fixtures & Supplies Store. In the next step, potential risk areas are listed for the user to select. These areas include keeping confidential information, using vehicles within the operation, or having employees. Finally, a business’s zip code is used to highlight regulatory requirements and potential risks based on location. Based on the information collected, the site provides the appropriate analysis methods for consideration.

  • Help small businesses understand the risks of their business model and the types of insurance that management and other stakeholders expect the company to carry. The very nature of business – having full-time employees, seeing patients, repairing roofs – forces other covers. However, other sources of information such as theft or employee error, while not necessarily relevant to management or engagement, may be relevant to risk management. Small businesses are often in the market for products they need to keep and may not know how to identify and protect certain interests.

Hiscox uses news stories to advise on when and how risks may arise for certain types of small businesses. For example, on its homepage architects and engineers, Hiscox refers to the danger that “the planner misinterprets the translations and orders valuables that do not work with the plans,” and points to professional liability insurance as the answer. Hiscox’s and company’s landing pages also link to videos that highlight the risks the company faces. Using context and language tailored to the unique needs of businesses, Hiscox encourages the small business buyer to think about the risks they are considering and how to protect them.

  • Ensure that educational materials, such as company updates and presentations, are relevant, easy to digest and up-to-date. Advertising carriers put in the work to make the most important things appear on the company’s official website or in other important places. This – provided to prospective and policy holders – should include current articles, industry research and risk trends, infographics and other changing insurance topics.

For example, prospective customers visit Liberty Mutual’s home page energy industry Check out three of Liberty Mutual’s latest and most important articles on energy trends, all including photos showing the topic, when to read, and the date of publication. The most important thing in providing research and other educational information is that the information is meaningful and consistent. For example, presenting fleet management information to small businesses that may use fleets, in conjunction with current industry trends or analytics, will inform and utilize users.

  • Don’t lose focus on the company during the wording process. The insurance needs of small business buyers vary widely, especially by industry, and the need to stay relevant doesn’t stop when a small business gets online financing. In fact, it is very important at this time, when a small business is faced with an increase in insurance that can cost a lot of money and can contradict the results or the benefits of other support methods. Small businesses will appreciate the decision support to help them know they are making the right purchases.

Allstate press release provides decision support by providing training on company needs and ordering products that are appropriate. For example, for a dentist, this means learning that Allstate has tailored its Business Shield products specifically for dentists. Several sections are grouped under the heading, “Coverage specifically designed for dental businesses like yours,” including targeted protection of business assets such as electronic data, valuable paper and documents, accounts receivable and employee fraud.

When talking to insurance brokers, small businesses sometimes feel like the middle child – they are not part of the retail market that advertises many insurance products, and they are not large customers who get the most attention. However, the needs of small businesses are varied and complex. Carriers that invest in products that recognize and educate small businesses about their unique needs, help consumers find the information and tools that matter most to them, and help make the right insurance decisions will win business and loyalty.

Beth Robertson is managing director of Keynova Group. Contact him at [email protected]. Chris Musto is a Keynova Group consultant. Contact him at [email protected].

Log in our LinkedIn group, ALM Small Business Advisora place where small business owners can gather to connect, discuss and experience events and issues affecting their industry.


Insurance helps businesses manage their risks

ALM introduces Small Business Adviser resources

Robo advisors can give small insurers a competitive advantage