September 19, 2013

Commercial Insurance Agents Should Understand Your Business - VA, DC, MD

Small commercial insurance customers most value having an insurance agent or broker who completely understands their individual businesses and helps them assess and manage their risk. The highest-ranked small business insurers deliver on both of these metrics for 60% percent of their customers, according to a Small Business Commercial Insurance Study. Basically, your insurance agent makes a difference.

The study examines overall customer satisfaction, insurance shopping and purchase behavior among commercial insurance customers with 50 or fewer employees. Overall satisfaction is comprised of five factors (in order of importance): interaction; policy offerings; price; billing and payment; and claims.

KEY FINDINGS
  • Satisfaction is significantly higher when an agent or broker understands their customer’s business and provides guidance regarding risk.
  • Policy offerings, not price, is the primary reason small business customers select an insurer; level of service is the primary reason they stay with their insurer more than two years.

Independent insurance brokers can provide this.

Overall customer satisfaction and interaction has the highest importance to small businesses, followed by policy offerings.  Interaction satisfaction is highest when customers interact with an agent or broker in person.

Providing face-to-face consultation, from insurance policy review to helping customers understand price adjustments initiated by the insurance agent, is crucial Those small business insurance customers who have regular face-to-face contact with their insurance agents are more likely to understand their coverage, its value and the reason for a price adjustment.

Policy offerings are an increasingly important driver of customer retention, especially for small businesses. Insurance brokers often have more and better options because they have access to different types of policies and can shop.

Small business owners want and need the confidence that they’re properly insured. They also need to understand the variety of insurance coverage options and they need to know that the policy meets their needs.

If you want a high level of service and a comprehensive understanding of your business insurance policy, contact TriState Business Insurance.