Nearly 30 million small businesses pepper the Main Streets of every community across the United States, according to the U.S. Small Business Administration.

They are restaurants, dry cleaners, contractors and professional firms, and opportunity abounds for the insurance market when it comes to selling policies to these workhorses of the American economy.

In fact, a small-business survey from the National Association of Insurance Commissioners found that more than 90 percent of small businesses carry property and liability coverage, and just more than 60 percent carry workers' compensation coverage. Further, as the small-business community grows, so does its need for insurance policies including workers' compensation, business interruption, commercial auto and other coverages, according to the NAIC.

One important first step in targeting small businesses is for independent agents to understand and bring to light their advantages over their exclusive agent competition. Local agents can't compete in the same way as exclusive agents who are spending more than $1 billion on advertising. Instead, they should focus on targeting small businesses who prefer to work with their community agent. Approach the small-business owner who prefers to do business on a local, neighborhood level and would rather work with a person, not a computer or call center.

Independent agents should remember what it is that makes them unique to the marketplace. When compared to their exclusive-writing counterparts, independent agents can provide more diverse products and services as well as white glove, in-person customer service.

So, how does a good independent agent tap into this lucrative market that could literally be next door? Let's examine some buying selling strategies on the following pages:

(Photo: iStock)

1. Assess risk exposures

Buying coverage? Have a good sense of coverage needs for your small business before approaching an agent.

Selling coverage? Collect and list the names of prospective small businesses in the area. Research the businesses to see whether they are a fit for the agent's product and service offerings by understanding their risk exposures.

(Photo: iStock)

2. Shop carefully

One of the best ways for an independent agency to tout its wares is to identify and build a brand. Raising awareness of this brand will help independent agents become well-known names within the community, as well as the go-to source for any business insurance needs. In building the brand, independent agents should point out particular advantages of doing business with them, including: choice in carriers, carrier resources, and personalized customer service from a member of the community.

Buying coverage? Small-business owners should learn everything available in the market, as well as what's offered by specialty insurers.

Selling coverage? Agents should consider whether the client is a good fit for the agency, as well as whether he or she has any claims, nonpayment, or legal issues.

(Photo: Shutterstock)

3. Consider bundling

Buying coverage? Explore a business owner's package to simplify the process and possibly save money.

Selling coverage? Understand the needs of the small business and which carriers offer the products and endorsements that might fit those needs; package them together where possible to avoid coverage gaps and offer savings.

(Photo: Shutterstock)

4. Secure a licensed agent

Small commercial businesses and independent agents can be a good match. After all, they are both small businesses based in — and in many cases, serving — the same community. They should be partners in business; much like a small business owner depends on vendors, accountants, and lawyers, it should know it can count on its local, independent insurance agent. For independent agents, knowing the right strategies to approach this business can be the key to a long, healthy and mutually beneficial relationship.

Buying coverage? Research the agent's reputation and make sure he or she understands the specific risks of the business.

Selling coverage? Understand the business to which the agency is agreeing to provide insurance, and the agency's competition.

(Photo: Thinkstock)

5. Review coverage annually

Small business owners often devote their life savings to their businesses. They don't want to jeopardize their livelihoods by leaving their business exposed to overlooked risks or unexpected events. Needless to say, they must be smart and selective when choosing an agent and subsequently, in buying the right insurance coverage.

Buying coverage? Consider new coverage as the business grows nd changes.

Selling coverage? After securing a small business account, agents should review coverage annually as the business grows and changes.

Matt Masiello is the executive vice president and chief operating officer of the Hampton, New Hampshire-based Strategic Insurance Agency Alliance.

Special Reports /

5 strategies for buying or selling small-business coverage

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