How To Get Small Business Insurance

The insurance industry offers several different methods for small business owners to get insurance. This article will cover the three types of distribution systems insurance companies use: direct writers, independent agencies, and exclusive agencies.

  1. 1. Direct Writers

    Insurance companies are direct writers if they directly employ sales representatives. A small business owner can do business with this type of insurance company by visiting its website, calling its contact center, or meeting with a sales representative.

    Some direct writers work with brokers, who help business owners apply for and maintain their insurance policies.

  2. 2. Independent Agencies

    Some insurance companies work with networks of licensed insurance agents. Independent agents are authorized to sell insurance for multiple insurers.

    When a business owner consults an independent agent, the agent brings advice, choice, and expertise to the table. Independent agents can have insight into specific industry needs, answer questions about the business’s unique exposures, and get competitive quotes.

    A business owner can connect with an independent agency by visiting the agency’s website or using an insurance company’s agency finder tool.

  3. 3. Exclusive Agencies

    An exclusive agency is an agency that provides insurance for only one insurance company.

    Business owners can connect with an exclusive agency by visiting the website of the insurance company.

When choosing how to apply for insurance, decide what matters most to you, such as geographic location, your understanding of the product, and access to knowledgeable representatives. Ask fellow business owners what method they use and their level of satisfaction.

The information and descriptions on this site are general in nature. The coverage afforded for a particular loss depends on the specific facts and the terms, exclusions, and limits of the actual policy. Nothing on this site alters the terms or conditions of any policy, as the policy controls coverage. Coverage options, limits, discounts, deductibles, and other features are subject to underwriting criteria, state availability, and effective dates. Coverage provided and underwritten by NJM Insurance Company and its subsidiaries, 301 Sullivan Way, W. Trenton, NJ 08628.