Ilda Dinis, vice-présidente, Expérience client et Marketing à Northbridge Assurance 

The evolution of small business insurance might make it easier for independent business owners to research and find solutions, but it doesn’t mean they want to be left to their own devices. “There’s an assumption that it’s becoming a commodity, and that customers just want to go online and get a quote,” says Ilda Dinis, vice-president of customer experience and marketing at Northbridge Insurance. The truth? “Small business owners value the advice that brokers provide,” she says. How can brokers be sure they’re hitting all the marks? Here, Dinis highlights common gaps in small business service, along with ways to meet them head on.

Small business customers want to ensure that they have the right coverage and limits. What are some common concerns?

Understanding of insurance outside the industry is incredibly murky, so small business customers want to feel confident that they have the right coverage to protect their business. Before the Internet, customers used to come to brokers for information. Today, everyone’s going online first when looking for a supplier. Now they’re coming in with a lot of information, but don’t know what to do with it. They need their broker to boil it down and tell them what’s right for their business.

What coverage elements do they often overlook?

We conducted research with small business customers last year and found that many of them don’t bother with business insurance at all. About half don’t have insurance because they think it’s too expensive, or if they’re running a home-based business, they think they’re covered under their homeowner policies. There’s a huge opportunity for brokers to educate small business owners not only on the right coverages, but on the importance of having those coverages. They can also dispel some of the myths—for example, small business owners often use their home or auto insurance as a barometer for what a business policy will cost, but, quite often, it’s just a few hundred dollars a year.

How can brokers best address small business customer concerns on pricing and coverage clarity?

There’s a myth that small business customers are always looking for the cheapest insurance. The reality is that they’re looking for the best coverage they can afford. That’s a really important distinction for brokers. The clarity piece is also huge. When it comes to limits, brokers can also flex their muscles and their value with small business owners. Some customers actually have too much coverage and a broker can guide them to ensure that they have the coverage and limits that are associated with the risks to their business.

What about customers with little time for insurance education?

Small business owners wear every hat when it comes to running their business—they’re chief financial officer, chief marketing officer, chief everything officer. They don’t have a lot of time, so make it easy for them and get back to them on their own terms. They want the option to communicate with service providers via text, phone and email. Don’t force a face-to-face meeting if they don’t have time for one—do it by phone or by email instead.

Anything else to keep in mind when approaching small business customers?

Small business owners often feel like they’re an afterthought, and that suppliers and vendors get back to them after dealing with larger customers. They’re incredibly proud of their role in the Canadian economy and want suppliers to understand and respect that. These owners want to work with brokers who treat them like true partners and who will help them make the right choices for their business.

What does Jean-François Béliveau, Excutive Vice President, Quebec region, Northbridge Insurance, think about this?

“Small businesses are the strength of the Canadian economy. The research we do, whether through our Customer Innovation team or with external partners, allows us to have a better understanding of this type of customer. I think the key for brokers to succeed in this market is flexibility and the concept of value-added advice. As Ilda Dinis said, the amount of information available on the Internet is so great that today's customers are very knowledgeable, but they have difficulty separating the wheat from the chaff. That’s where brokers can play their role of being true risk management advisors.”

® and ™ Northbridge Financial Corporation, licensed by Northbridge General Insurance Corporation (insurer of Northbridge Insurance policies).