The COVID-19 global pandemic has altered the small business landscape. Many SMBs (small and medium businesses) were made deeply aware of gaps in their current insurance coverage and are more cost-conscious than ever when it comes to policy pricing.
As a result, more small business owners are taking a hands-on approach to protecting their businesses and looking for better insurance options.
“Small businesses are still feeling the effects of COVID-19,” says Pavel Yurkov, VP of Technology & Operations at BizInsure. “They are more aware of their business insurance needs, and many want greater control in choosing and buying policies.”
Changing attitudes toward business insurance
A recent consumer survey by Deloitte Global echoes Mr Yurkov’s insights into how SMBs are responding to the impact of COVID-19 and the overall changing business landscape.
Of the 501 respondents in the United States, just over 34% said they were ‘more likely’ or ‘much more likely’ to buy business insurance.
While shielding their businesses against future losses caused by the pandemic was the primary factor for seeking insurance, many small business owners also indicated a growing awareness of everyday risk. Over 14% indicated that they were more aware of the risks their business faces, and 12% said they better understand the risks their business needs protection from.
“We’ve seen an increase in quotes and purchases over the past year,” says Mr Yurkov. “Small business owners are more aware of their business risks and are eager to protect their businesses against them.”
Automation is gaining popularity
Insurance agents and brokers are still the preferred way for SMBs to buy business insurance. Over 72% of those surveyed said they used the services of an insurance intermediary.
However, an overwhelming majority of respondents (85.2%) said they were open to buying insurance from non-traditional channels, including online.
Pricing transparency, the convenience of getting coverage from one company, and reducing the amount of time spent buying and managing policies are some of the reasons why SMBs are open to buying business insurance without the help of an insurance agent.
Speed and convenience—without sacrificing quality
Platforms like BizInsure are uniquely positioned to serve small business owners looking for alternative ways to buy insurance.
“The goal of BizInsure is to simplify the insurance buying process. We’ve streamlined every step, so business owners can get instant coverage, typically in less than 10 minutes,” says Mr Yurkov.
He continues, “We only work with top-rated insurers and have built a comparison platform that reduces costs while adding a great level of transparency.”
One possible hurdle to buying business insurance online is the perceived lack of customer care. Most survey respondents said they preferred to deal with a real person (rather than a chatbot), either in person or over the phone.
“Outstanding customer support is a core part of BizInsure’s model,” says Mr Yurkov. “Business owners are welcome to compare, buy, and manage their policies completely online. If that doesn’t fit their needs, our licensed agents are ready to assist over the phone, when and where our customers need it.”
The bottom line
As SMBs get back to business as usual, they are looking for more and better ways to help protect themselves and their business.
Online tools can help meet this demand. They can also empower SMBs to make these choices themselves, with real-life customer support available when it’s needed the most.
ABOUT US
BizInsure is an offshoot of the Australian Insurtech BizCover, which disrupted the insurance industry in 2008.
Troubled by the merry-go-round small businesses had to go on just to get the right insurance coverage for their business, they brought the online service to the US market in 2012 under the BizInsure brand.
This revolution allowed them to reduce costs and fees, increase pricing transparency and decrease the hassle of getting insured for time-poor and cost-conscious small business owners. BizInsure has sold over 18,000 business insurance policies as of 2022.
