You’ve heard it time and time again: Small businesses drive theAmerican economy.

But are you underestimating the role that the nation’s smallestbusinesses can have on your own financial wellbeing?

Small employers (those with between 10 and 100 employees)account for 92 percent of all American businesses and employ morethan 27 million people, according to the U.S. Census Bureau.

While these employees have the same needs as their larger-firmcounterparts for financial protection, they are less likely to getthem in the workplace, as many employers never offered them andothers have started sending employees to the health exchange.

Only 54 percent of the country’s smallest employers (those withbetween 10 and 50 employees) offer at least one voluntary product(including life insurance, accident insurance and disabilityinsurance). That figure shoots up to 86 percent for employers withbetween 50 and 100 workers, according to Eastbridge ConsultingGroup. [i]

But opportunities abound, as both groups said they would belooking to add voluntary benefits in the workplace in the comingyears. Some 20 percent of small employers (50 to 100) said theywere likely to offer a new voluntary benefit and 21 percent saidthey would likely move a current benefit to voluntary. For verysmall employers (10 to 49), the numbers were 11 percent and 15percent, respectively, according to Eastbridge. i

Employers surveyed say they offer voluntary benefits to employees inorder to achieve cost savings to the company (as compared to havingto pay for these benefits), to respond to employee interest in theproducts, to take advantage of the ease of administration and toaid in recruiting and retaining employees. i

The top voluntary product offered by small employers is accidentcoverage. But only 47 percent of small employers and 26 percent ofvery small employers offer this type of insurance. Other topbenefits options at small employers are critical illness, termlife, hospital indemnity, short-term disability and accidentaldeath and dismemberment insurance. At very small employers, dentalcoverage and long-term disability are also popular offerings. i

Voluntary benefits at these small employers are big business.Voluntary sales to accounts with 100 or fewer employees totaled$1.56 billion in annualized sales premium in 2013, with $811million coming from firms between 26 and 99 employees, according toEastbridge. i

“This presents a huge opportunity for advisors who areable to demonstrate their value,” said Mary Boyce, associateanalyst at LIMRA Insurance Research. “Helping both employers andemployees understand the options available within and outside theexchanges will be a new way for advisors to grow their business.”ii

More importantly? Small employers know they need your help andbrokers are poised to bridge that gap and find success in helpingsmaller firms.

A huge percentage of business owners (94 percent) with fewerthan 100 employees say the need for advisors is remaining strong orincreasing, according to LIMRA[ii].But only half of these firms currently use advisors for business orpersonal needs.

Choosing the right benefits partner is key for brokers to takeadvantage of the great opportunities for voluntary products in thesmall-case market.

Small employers are looking at a number of factors when choosinga carrier for their benefits. Price is often cited as the topfactor in choosing a benefits partner. But it’s important to keepthe other factors in mind as well, including employees’ ability tosubmit claims online, employees’ online access to claims forms,carrier reputation, and online access to claims status anddocumentation.

But you have a list of things you’re looking for as well,including competitive compensation schedules, quality VB productsunaffected by PPACA, and turnkey benefits counseling and enrollmentservices.

Online access is clearly important, but technology can becritical in a variety of other ways. Be sure you understand whatpossible benefits partners can do to help you:

1. Ease the burden of finding potential new customers through appsand online access
2. Save you time and effort by helping you communicate and enrollemployees into enrollment solutions while you can focus on findingnew business

Picking a partner that develops products and services that aresimple, modern and personal can be key to satisfaction foremployers, employees and your wallet.

About the Author

Gil Youmans is the director of small market solutions atColonial Life & Accident Insurance Company. Colonial Life is amarket leader in providing financial protection benefits throughthe workplace, including disability, life, accident, dental,cancer, critical illness and hospital confinement insurance. Thecompany’s benefit services and education, innovative enrollmenttechnology and personal service support more than 80,000 businessesand organizations, representing more than 3 million of America’sworkers and their families.

For more information about Colonial Life’s products andservices, contact Youmans at 803-678-6574, e-mail him at [email protected] orvisit www.ColonialLife.com. Or connectwith Colonial Life at www.facebook.com/coloniallifebenefits,www.twitter.com/coloniallifeand www.linkedin.com/company/colonial-life.