Over 80% of Small Businesses Would Buy Insurance Online
Earlier this year Bullfrog Insurance took the opportunity to survey thousands of small businesses to better understand how these customers perceive insurance, how knowledgeable they are about business risks and how receptive they are to the concept of a digital brokerage. The results of this endeavour were exceptionally eye-opening.
Many Businesses Are At Risk
As many of our customers are first-time buyers, we had anticipated that a fair amount of the people who filled out the survey would confess to not having insurance. We were taken aback slightly when the numbers came in however. A disturbing 35% of small businesses who filled out the survey confirmed that they did not have small business insurance coverage. To put that into perspective, consider all the products and services you make contact with in a given day – now consider the idea that more than 1 in 3 of them may not have business insurance.
Reasons and Realities
Small business owners are busy people stretched in a thousand directions, so the idea of taking up precious time to deal with a broker and file forms during business hours is something they are inherently averse to. This was confirmed by results that said 22% of them viewed the process of obtaining insurance as “too complicated”. Many were also under the somewhat unfounded impression that insurance is “too costly”. Each day clients are stunned to find out Bullfrog Insurance has General Liability policies available from as little as $350 a year.
Ready for Digital
Bullfrog Insurance specializes in selling business insurance online because we believe business owners are busy people who want to get coverage when they want, not when brokers are available. Therefore we asked small business owners how they felt about the idea of buying insurance online. We were pleased to find a very decisive number of respondents confirming they were willing to buy insurance online. Over 80% of respondents confirmed they would buy insurance online. Beyond those there were 4% who confirmed they were not even aware you could buy coverage online. What a pleasant surprise!
Conclusions
While the Bullfrog Insurance survey made it apparent that there are still a large number of business owners who do not understand or see the value of obtaining coverage to mitigate against unforeseen risks, it did confirm that the majority of business owners do appreciate the importance of insurance. It was also clear that the industry still has a fair amount of work to do to further educate customers, reduce complexity and dispel myths about the costs of insurance and the difficulty of obtaining coverage. Beyond this, it was encouraging to see that customers do want to have the option to shop and buy insurance online and will take steps to get coverage online whenever possible.
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