Growth Opportunities in Small Business
John Ryznar, Head of Small Business Underwriting, Westfield Insurance
Small businesses are the lifeblood of the United States economy. They make up roughly 99.9% of all businesses, contribute about 43.5% of gross domestic product (GDP) and provide nearly half of private employment.
Despite headwinds such as inflation, tariffs and labor shortages, small businesses remain confident and optimistic about growth, according to the U.S. Chamber of Commerce. This resilience is driven partly by artificial intelligence (AI), upskilling initiatives and changing consumer trends.
As the sector continues to evolve, Westfield Insurance sees a growing opportunity to support the small businesses that fuel local economies and represent the hard-earned livelihoods of millions of Americans.
A strong fit for Westfield’s portfolio
Small businesses are attractive to Westfield for several reasons:
- Expanding Our Small Business Portfolio: Westfield is committed to growing our Small Business portfolio by meeting the needs of both our agents and small business owners. Our team has developed a strategy focused on delivering a seamless customer experience, one that leverages strong agency relationships, responsiveness and advanced digital capabilities. This approach ensures agents and customers can engage with us when and where it’s most convenient, creating flexibility and ease at every touchpoint.
- Portfolio diversification: Beyond our strong presence in contractors, lessor’s risk only (LRO), and habitational risks, Westfield is well-positioned to meet the needs of a diverse range of businesses, from manufacturers and retailers to consultants and common office exposures such as medical practices and accounting firms. By balancing these lower-complexity risks with other lines, we provide agents and insureds with a more consistent, stable, and predictable small business portfolio.
- One-stop-shop: Small business owners need their insurance to be simple. They often look for bundled coverage solutions that combine property, liability and other key lines within a single policy. They also value working with a carrier that provides all major lines of insurance, including workers’ compensation. Westfield’s ability to offer comprehensive solutions positions us well for growth in the small business space.
Growth opportunities: Office, Retail and Service Industries
We’ve identified specific opportunities within the office, retail and service industries where we believe Westfield can thrive.
Medical offices are a key target class. To grow in this area, we’ve leveraged extensive performance data to develop technology that dramatically reduces the number of questions needed to classify and underwrite these risks. This tool focuses on lower-complexity practices, such as general practitioners or dermatologists, where we’ve identified consistent risk profiles and reliable performance. Our goal is to enable faster, more efficient binding for many accounts, freeing our underwriters to focus on more complex cases where they can add more value.
Retail also continues to be a strong focus for us, specifically targeting the small businesses that line America’s Main Streets. These businesses include boutique clothing stores, florists, bakeries, Deli’s, beauty salons, as well as the growing segment of online retailers.
Service industries present significant growth opportunities. Businesses such as barber shops, funeral homes, consulting firms, and spas continue to expand as more individuals pursue their dream of becoming their own CEO and owning their own business.
To meet the needs of our agents and small business owners, we are re-designing our front-end system so agents can quote straightforward risks in a matter of minutes. In many cases, they can bind coverage immediately, allowing agents and small business owners to move forward without delay. We are also exploring tailored, modular offerings that allow small business owners to choose the coverages they need without paying for unnecessary coverage.
A trusted nucleus for small business clients
Small business owners wear many hats and welcome any support they can get. Beyond simplifying the insurance-buying experience, Westfield is also leading with a strong risk management approach.
Our underwriters, risk control experts and claims specialists are available to support agents and insureds with practical risk management advice, from identifying exposures and checking crew safety equipment to reviewing return-to-work programs. This support can take the form of a one-page risk control tip sheet or an on-site visit to help a small business owner implement a formal risk management program.
The challenge is that small business owners are often very busy and hyper-focused on their bottom line, which means proactive risk management can sometimes take a back seat. Communicating risk in a way that resonates with small business owners is critical. It’s one thing to identify exposures, but another to show how they can become real-world issues.
Take a mom-and-pop retailer in a snowy location: If employees aren’t wearing proper footwear, a slip and fall could result in a costly workers’ compensation claim, plus the expense of sourcing a replacement worker. Helping owners understand these risks and take practical steps to mitigate them is essential to protecting both their business and livelihood.
A message for agents
The connection an agent builds with a small business owner is never solely transactional. These owners have built their livelihoods from the ground up, and the right insurance program plays a critical role in whether they can recover from a loss or risk losing their business (and often their lifelong dream) entirely.
At Westfield, we champion a collaborative approach, where agents, underwriters, risk control and claims specialists come together to create a trusted nucleus of support that small business owners can rely on. This allows owners to focus on running their business, confident they have the right coverage and risk controls in place to deal with everything from slips, trips and falls to road traffic accidents, professional errors, storm-driven property damage and more.
As we pursue growth in the small business sector, we will continue to continue enhance our products, simplify our processes and strengthen our customer service, all with an eye to making life easier for our agent. By working together toward the best outcomes, small businesses are better positioned to stay resilient and grow, supporting local economies and the nation as a whole.
