Don't let the word “small” mislead you—there's nothing small about them. Their numbers are big, they’re growing and they serve as the lifeblood of the U.S. economy. And, most importantly, they need your help.

Yes, I’m talking about small businesses with fewer than 100 employees. According to LIMRA, they make up about 98 percent of all employers. And, according to Moody's, with more than 5.6 million small businesses employing over 64 million people, they encompass 55 percent of the working population. That's big.

The struggle with most small businesses is that they have limited or no human resource staff to help evaluate benefit options for their employees. And, because many of them don't currently offer employee benefits, that translates into an untapped market for you, the broker.

Here are a few suggestions to help get big results.

Small business owners rely on and nurture relationships. Partner with attorneys, accountants and local associations to connect with these business owners.

Offer your help in meeting their core benefits needs first, such as medical, dental, life, disability and vision, as foundational elements of the program. Consider voluntary options if cost is a limiting factor for the employer. Then, later expand coverage to include supplemental benefits like critical illness to fill gaps. Remember, too, that because of so many benefits choices, small employers might worry that they’ll make the wrong choices in choosing offerings. Your job is to help relieve that anxiety and help them pick the right benefits for them.

Small businesses don't view themselves as small—they crave choice and flexibility just like everyone else. So be sure to tailor a package that meets their specific objectives. While it can be simple, be sure it feels customized to the employer. Don't suggest a generic pre-packaged benefit design.

Partner with a carrier that has expertise in the small case market—one that offers creative product solutions and can provide flexibility and robust support for both you and your clients. This is critical in the small case market.

All in all, don't let the word “small” deter you from going after this market segment. It's big business and, if done well, it will produce big results and help you expand your client base.

Continue Reading for Free

Register and gain access to:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.