Let's start by addressing common misconceptions about small commercial accounts, including that these accounts are not profitable due to lower premiums and higher customer service demands. There are numerous opportunities to enhance the efficiency, cost-effectiveness, and profitability of small commercial accounts for agents. Below are three strategies that can help optimize the effectiveness of small commercial business operations and drive meaningful results for an agency.

1.       Partner with a deliberate mix of select carriers

Carrier relationships are foundational to any agency’s success. But in small commercial, where efficiency is everything, the number and type of carriers an agency works with can make a big difference.
Managing too many carrier relationships can impact efficiency and stretch teams thin. Each carrier comes with its own quoting platform, underwriting appetite, and service model. The fragmentation that comes with so many carrier relationships slows down your business operations and dilutes your influence with each carrier partner. On the flip side, working with too few carriers can limit your ability to meet the diverse client needs including evolving risks.
Many successful agencies find that working with a focused group of five to seven carriers to place small commercial businesse strikes the right balance. This allows agents to build deeper, more strategic relationships—often unlocking benefits like profit sharing, co-marketing support, and faster underwriting turnaround. It also helps agents become more proficient in each carrier’s systems and products, which can reduce quoting times and improve accuracy.

2. Offer a total account solution

Splitting accounts across multiple carriers can significantly impact efficiency in the agency. These accounts often require more servicing, more billing coordination, and more time spent answering questions from clients who are confused about who covers what. Whenever possible, consolidating a client’s policies with a single carrier can simplify and enhance the experience for both the agency and the insured. It reduces administrative overhead, minimizes the risk of coverage gaps, and often results in a more cohesive risk management program for clients.

Some carriers are making this easier by offering both standard and specialty lines under one roof. That means fewer logins, fewer service calls, and a more unified customer experience. For example, The Hanover’s Agency Insight offers a consultative process to help agencies identify monoline or split accounts that could be rounded out with additional lines—turning inefficiencies into growth opportunities.

3.       Leverage best-in-class customer service centers

Not every account requires the same level of attention. That’s where carrier customer service centers can be powerful tools. By placing smaller, more transactional accounts with a service center, your internal staff can focus on more attention demanding high-value accounts and promising new business opportunities.

Service centers can handle everything from billing questions to policy changes and renewals—freeing up agency representatives and producers to spend more time on meaningful client interactions. Industry-leading service centers are able to service the whole account including both core and specialty lines, which results in a more seamless experience for the customer and adds additional service value for the agency. In fact, data indicates that agents who use service centers write significantly more new business in their first year—up to 46% more in some cases. This model also supports a more scalable operation. Consequently, as a book of business grows, there isn’t a need to add headcount at the same pace, because your team is focused on what it does best.

The power of strategic consolidation

Each of these strategies—carrier alignment, account consolidation, and customer service center utilization—can drive real impact on its own. But together, they form a powerful framework that drives efficient and effective operations and ultimately, sustainable profitability in a small commercial book.

The key is to approach consolidation strategically. That means partnering with carriers who are committed to independent agents and who offer tools to help identify where the best opportunities lie. Whether it’s through AI-powered book reviews, consultative insights, or integrated quoting platforms, the right partner can help uncover efficiencies you didn’t know were there.

Consolidation isn’t about cutting corners—it’s about investing your time and energy where you can make the greatest impact. As the small commercial market continues to evolve, agencies that operate with focus and intentionality will be best positioned to grow.

Ready to streamline your small commercial operations and unlock new growth? Discover how The Hanover can help: Visit us at hanover.com