Why Big Insurance Companies Might Overlook Smaller Businesses

If you own a small to mid-size business, you might have noticed that big insurance companies often seem uninterested in your business. It’s not just your imagination. There are a few key reasons why these large carriers might not be knocking on your door.

 Risk and Reward

Big insurance companies are all about managing risk and making money. Smaller businesses, with their limited financial resources and potential instability, often seem like a bigger risk. For these companies, the potential profit from insuring smaller businesses doesn’t always balance out the risk involved. They prefer to work with larger clients who offer more predictable and substantial revenue streams.

Administrative Hassles

Dealing with a lot of small businesses means a lot of paperwork, claims processing, risk assessments, and customer service. All of this administrative work can be costly and time-consuming. For large carriers, it’s often more efficient and cost-effective to focus on a few big clients rather than hundreds of smaller ones.

Economies of Scale

Insurance companies like to spread their costs across a broad base of high-revenue clients to achieve economies of scale. Smaller businesses don’t offer the same level of cost efficiency. For big insurers, it makes more sense to invest their resources where they get the most bang for their buck.

Unique Needs

Smaller businesses often have unique insurance needs that require customized solutions. Big insurance companies typically offer standardized policies designed for high-volume clients. They may not have the flexibility to tailor their offerings to meet the specific needs of smaller businesses, which can be a deal-breaker for both sides.

Competitive Market

There are plenty of smaller insurance providers that specialize in serving small to mid-size businesses. This means big carriers might avoid this saturated market and focus on areas where they can leverage their size and resources to stay competitive.

 The Silver Lining

While it can be frustrating to feel overlooked by big insurance companies, there’s a bright side. Camargo Insurance, although a smaller family owned insurer, can provide the personalized service and customized policies that larger carriers can’t. We understand firsthand the unique challenges and needs of smaller businesses, ensuring you get the coverage and attention you deserve.

So, while the big guys might not be interested, Camargo Insurance is eager to help your business thrive.

Get started with Camargo.  Give us a call or schedule an appointment.