3 Ways Agents Can Help Small Businesses Become Better Risks

• By: Olivia Overman
• June 30, 2025

In 2023, there were over 33 million small businesses in the U.S., according to the U.S. Small Business Administration, a market sector—defined by those with less than 500 employees—that is at the heart of the American economy, creating employment and contributing to the country’s overall prosperity.

Small businesses face unique challenges that require tailored solutions. And in an economy that is changing by the day, small commercial insurance must evolve with it.

For agents, the challenge is finding a way to deliver comprehensive protection and streamlined service without adding to the insured’s already-strenuous burden of running a business.

“Small business owners want to focus on their business and not renewing their insurance,” says Tom Fitzgerald, president of retail, World Insurance Associates. “So, how do we get the necessary information for renewal from clients while also providing the best service to the small business community?”

There are many options for products and services and “the broad-based coverage offerings certainly do a good job covering the primary bases of exposure,” says Mike Brassil, vice president of small commercial, Nationwide. “Many risks, however, have unique exposures that require a different or additional approach and carriers succeed when they are able to offer customized solutions for industries or classes of business.”

Here’s how agents can help small business clients with their insurance:

1) Bundle products. While there’s “a myriad of products that are highly tailored for small businesses, many small business owners don’t have the time to read or to understand the nuances of a 50- or 100-page insurance policy,” Fitzgerald says. “A reasonably priced policy written on three pages that provides additional coverages, such as management liability and employment practices liability insurance, is a good thing to offer.”   

A general liability policy doesn’t cover all the exposures of a business, but “there are additional coverages offered that could be complementary to a business’s needs,” Brassil says. “Business owners still want to be aware of their risks and evaluate if a general liability policy will be sufficient or if maybe liability coverage specific to their needs, such as a liquor liability, employment practices liability insurance or a directors & officers liability policy would offer them the protection they need.”

2) Emphasize risk mitigation strategies. Education is key when it comes to assisting small business owners with managing and mitigating risks. “Agents and carriers are increasingly emphasizing risk mitigation strategies to tailor protection solutions for small business owners,” Boyers says.

In particular, for industries that are “considered high risk for general liability claims, such as construction, transportation and manufacturing, implementing comprehensive loss control measures is vital,” Boyers says. “Underwriters are keen to see specific risk mitigation strategies implemented that enhance business resiliency.”

3) Understand market segments. A key benefit agents can offer their clients is understanding their market and any emerging risks for the market. Becoming an expert “enables agents to offer tailored advice and solutions that are particularly relevant and beneficial,” Boyers says. “This specialist knowledge is a cornerstone of our service strategy, helping to ensure that every client feels informed, protected and valued.”

When it comes to high-risk markets, however, “the more prevalent drivers right now of claims activity and prior-year reserve development are premises exposures in the real estate, retail and food service industries,” Brassil says. “These range from injuries sustained from slip and falls to onsite confrontations and assaults and, depending on the state and venue, can result in high rates of litigation and large claim settlements.” 

Working closely with carriers ensures agents can assist clients with accessing the necessary carrier resources. “It’s a combo platter between how the carrier ultimately supports those insureds and how the agent can deliver the right loss control and claim support when the carrier’s not willing to do so, or doesn’t have the capabilities to do so,” Fitzgerald adds. “Finding the carriers that have those capabilities and are competent in underwriting particular risks is important.”

Olivia Overman is IA content editor.