A staggering 99.8% of Canadian private businesses are classified as small to medium-sized businesses and enterprises. Collectively, these businesses contribute around 38.4% of Canada’s GDP, while employing at least 70% of the Canadian workforce. This paints a picture of how successful and important SMBs (small and midsize businesses) are towards Canada’s economy.
However, running a business has never been for the faint of heart. Entrepreneurship is inherently risky – so, it’s no surprise that approximately 20% of small businesses do not survive their first year. Furthermore, another 50% of those small businesses fail after five years.
In such a competitive market where the economic landscape is ever-changing, a lot is demanded and expected from a small to midsize business or enterprise. For new businesses, there is an added challenge of breaking into the market. This is why litigation, severe property damage, theft, employee accidents, and other unforeseen events can take their toll or bring a business to a grinding halt.
If you are an SMB owner who is looking for the next step to take towards an insured future resulting in minimized risks, then this article is for you. Here, we will cover the advantages of employing the services of an SMB insurance brokerage.
Let’s get started!
SMBs and Commercial Insurance
There are numerous reasons why businesses don’t survive in the long-term. Some of the common reasons for business failure are:
- Lack of funding
- Poor marketing
- Inadequate management
- Ineffective business planning (or optimization)
Risk management through commercial insurance is possible with the right insurance plan – spanning across all the above facets. After all, in the face of litigation, disaster, and other perils; funding, marketing, management, or business planning/optimization will probably not be enough to save the business.
Moreover, if you are the owner of an SMB, you know how challenging it can be to maintain or improve your bottom line. So, without the right insurance plan, surprise expenses from lawsuits, medical costs, and emergency repairs can swiftly put you in the red. Sadly, this doesn’t always end well and some businesses are forced to permanently close their doors.
This is why 60% of small business owners opt to have insurance. And though these businesses buy commercial insurance in hopes that they wouldn’t need to use it, studies show that a significant number of businesses, up to 40%, file a claim within a 10-year period.
Another often overlooked advantage of having commercial insurance is the peace of mind it can give you. When you know that you are adequately protected against risks, you can manage your business without worry and focus on taking steps towards success.
What is A SMB Insurance Brokerage?
An SMB insurance brokerage focuses on putting together insurance policies for small to medium-sized businesses and enterprises. As an insurance brokerage firm, they are not tied to one particular insurance provider and can thus give you a range of options when it comes to commercial insurance.
Because SMB insurance brokers have specialized knowledge and experience towards the needs of small to medium-sized businesses, they offer plenty of benefits if your business falls in this category.
The Benefits of Choosing an SMB Insurance Brokerage
1. Brokers Works for You, Not the Insurance Provider
This is one of the top advantages of choosing an insurance broker. They work for you, not the insurance provider. This means they have the best interests of your business in mind; starting with thorough research. Then, the insurance broker will give you a variety of flexible, fully-transparent options that best suit your business needs. A broker is unbiased because they are not focused on trying to convince you to sign up with any specific insurance provider.
Insurance brokers also work in teams, which means that they have a rich pool of collective experience and a vast network of trusted insurance providers, all built over the years.
2. SMB Insurance Brokers Understand Your Unique Needs
Small business insurance brokerages can easily grasp your needs and concerns. For instance, one of the biggest challenges for small to medium-sized businesses, from an insurance standpoint, is the associated costs.
Instead of trying to convince you that the cost is worth it and that you should choose from pricey insurance providers, SMB insurance brokers will immediately understand when you bring up this barrier. From there, they can quickly work to find you competitive rates that will give you the most value for your money.
3. SMB Insurance Brokers Have Experience Working with Similar Clients
Obtaining insurance is not always a straight path. You may have doubts or questions. There may be concepts that you don’t grasp quite yet as a new business owner. You may want to approach insurance gradually and scale up your coverages through time. Whatever obstacle you undergo as a customer, small business insurance brokers have seen it before.
It’s likely they have vast experience in dealing with clients who are in similar situations and will immediately be able to identify solutions tailored to your specific needs.
4. SMB Insurance Brokers Can Give Options That are Fit For Your Needs
Each insurance brokerage has its network of insurance providers with whom they have built relationships throughout the years. By choosing an SMB insurance brokerage, they can give you options from their numerous tried-and-tested insurance providers who specialize in providing coverage for small and medium-sized businesses.
Award-Winning SMB Insurance Brokerage in Toronto
At KASE Insurance, we focus on taking care of your business as if it was our own. We are an award-winning SMB insurance brokerage based in Toronto, with clients across Canada. We are known for our dedicated customer service and highly-customizable insurance plans.
After taking the time to understand all the unique risks of your business, we put together a strategic insurance plan that has the most competitive rates in the market. With our years of experience and vast industry recognition, you know your business is in good hands.