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It Takes A Village: Independent Agents Help Small Businesses Thrive


By Kim Merrick
Director of Small Business Portfolio and Underwriting Management

Building a small business from the ground up requires the owner to quickly become a Jack or Jill of all trades. The ingenuity, resilience, and resourcefulness that business owners bring to their ventures always inspires me, and I get to see that first-hand as part of my job at Selective.

I was recently a guest on the first episode of season two for the Uniquely Small Biz podcast, which featured Regina and Dom Pasqualone of the Tiny Kitchen Candle Co. What began for them as a hobby in their small New Jersey kitchen is now a thriving home-based company with a distribution partnership with Whole Foods. This kind of growth is inspiring for any business. It is also a reminder that small business owners need to re-evaluate their insurance coverage needs as their companies expand.

As a mom of two, a common theme applies to parenting and growing a small business: it takes a village. With parenting, you quickly realize you do not have all the answers, and you certainly do not have the time to figure out the best approach for raising children on your own. So what do you do? You turn to your village – family, friends, and people who can lend their expertise.

The idea is the same for small business owners. They can seek assistance from their "village" – a network of professionals who can provide advice on effectively managing business finances, streamlining production, handling operations, or simply providing feedback on a new product. There are other areas to consider, too, such as the best ways to safeguard the time and energy they have invested in building their small business. In that case, an independent insurance agent is a fantastic resource.

For example, many entrepreneurs, like the Pasqualones, start their companies in their homes. However, it is a dangerous yet common misconception that a homeowners policy covers loss or damage to products, equipment, and other business property. A 2020 study revealed that 40% of all small businesses are underinsured, which rises to 60% for home-based businesses. An independent agent can help identify gaps in coverage and tailor the policy to fit their business needs. Agents can be a critical part of the network that helps small businesses thrive.

While small business owners rightfully focus their energies on the quality of their products or services and the satisfaction of their customers, they should also have an independent agent as part of their village to make their business interests a priority. The benefits of working with an independent agent are broad. Having an agent on speed dial lets small businesses owners address complex insurance coverage topics and get context on additional issues that they may not think to bring up, such as:

  • Assumption of coverage: Business owners can sometimes make the easy mistake of assuming their current policy covers everything they need. A licensed professional independent agent can best explain what coverage they do and do not have.
  • Big Picture Analysis: Independent agents not only advise on what coverage makes sense for where a business is now, but they also help project what would make sense for the future. They can think comprehensively about coverage and make informed suggestions about what to include.
  • Networks, networks, networks: Agents are often members of the local community and can connect small business owners with other knowledgeable professionals who can assist with their business needs.

Just as it takes a village to raise a child, it takes a village to grow and maintain a business. A small business owner's network of professionals should include independent insurance agents to help them reach the goals they have set for themselves and those they did not know were possible.

About the Author

Kim Merrick is the Director, Small Business Portfolio and Underwriting Management at Selective. Kim is responsible for helping shape our Small Business offering to ensure it aligns with our customers' needs and helps protect their livelihood.