Brian Calley President and Chief Executive Officer at Small Business Association of Michigan | LinkedIn
Brian Calley President and Chief Executive Officer at Small Business Association of Michigan | LinkedIn
Small business owners often rely on a team of professionals to support their operations and achieve profitability. Among these professionals, insurance agents play a crucial role in protecting business assets from unforeseen losses. However, choosing the right insurance agent requires careful consideration.
Insurance agents should have strong relationships with the companies whose policies they sell. This ensures they can negotiate coverage and assist with claims processes effectively. As one expert notes, "You want an active insurance partner, not a salesperson who has no operational relationship with the companies they represent."
Education is another critical factor when selecting an insurance agent. Agents must stay informed about industry developments and may pursue professional designations such as Chartered Property Casualty Underwriter (CPCU) or Certified Insurance Counselor (CIC). "There’s a plethora of educational programs available to an agent," states the article, emphasizing the importance of expertise.
Industry knowledge is vital for ensuring comprehensive coverage tailored to specific business needs. Agents familiar with your industry can provide seamless protection through specialized policies. Business owners are advised to inquire about the agent's experience within their sector: "Ask the agent about the content of their 'book of business.'"
Access to diverse insurance markets is also important for obtaining suitable coverage options. The article advises discussing how many companies an agency represents and whether it has access to nontraditional coverages like Directors & Officers Liability or Environmental Impairment Liability.
Lastly, support staff availability can impact service quality. Business owners should ensure that agencies assign dedicated Customer Service Representatives (CSRs) capable of handling billing issues, coverage changes, and other administrative tasks.
The selection process for an insurance agent is complex but necessary for safeguarding financial well-being against potential lawsuits and property damage.
By Brian Francis; originally published in SBAM’s May/June 2025 issue of FOCUS magazine
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