Online Business Insurance: Do 60% of Small Businesses Really Buy Without an Agent?

You’re scrolling through industry news with your morning coffee when BAM—a headline hits you like a brick through a window:

“60% of small businesses are buying business insurance online without an agent.”

If you’re an insurance agent, you probably just felt your stomach drop. If you’re a business owner, you might be wondering if you’re behind the times for still working with one.

But before we all panic (or celebrate, depending on which side of this you’re on), let’s pump the brakes and ask the question that should come before any dramatic industry proclamation:

Is this actually true?

Spoiler alert: it’s complicated.

Where This Eye-Popping Stat Actually Came From

This particular claim comes from our friends at NEXT Insurance, who surveyed 1,500 of their own policyholders in March 2025 about their online business insurance buying habits.

Now, credit where it’s due—NEXT did solid research. The sample size was respectable, the methodology was sound, and the findings definitely grabbed attention.

But here’s the thing that makes me raise an eyebrow…

NEXT Insurance is a digital-direct carrier whose primary business model depends on convincing people they don’t need agents. Their customer base? Tech-savvy, digitally native business owners who’d probably order their morning coffee via app if they could figure out how to get it delivered while still hot.

So when NEXT surveys their own policyholders about preferences for buying online business insurance, it’s a bit like asking Tesla owners if they prefer electric vehicles.

You’re going to get some pretty predictable answers.

What the REST of the Industry Data Says About Online Business Insurance?

And here’s where things get interesting (and by “interesting,” I mean “completely different from that headline”). The broader industry data shows:

• CIAB’s 2024 Small Commercial Survey: Over 80% of small commercial premiums still flow through agents and brokers. Not 40%. Eighty percent.
• McKinsey’s 2023 Commercial P&C Distribution Report: Roughly 75% of small business buyers still prefer or actively use agents when purchasing business insurance
• Accenture (2021): ~70% of small business owners want agent guidance
• PwC (2022): That famous 48% online stat? It was global, not U.S.-specific
• AM Best/JD Power/S&P: Consistently shows agency-driven distribution in small commercial

Turns out the market tells a very different story when you look beyond one conveniently timed, clever survey.

Why This Matters: Online Business Insurance Isn’t a Simple Product

Small business insurance isn’t like ordering a book on Amazon. We’re talking about protecting real businesses with real employees and real risks—general liability, property coverage, workers’ compensation, employment practices liability, cyber liability insurance, commercial auto, and business owner’s policies. Each business has unique exposures that could threaten not just the owner’s livelihood, but their employees’ jobs and families too.

Business owners lose sleep over questions like:

• “What happens if my employee gets hurt while making a delivery?” or,
• “Am I covered if someone slips on my sidewalk?” or,
• “What if I accidentally send confidential client data to the wrong email address?”

These aren’t Google-able questions with simple answers. They require expertise, context, and usually a conversation about the specific risks inherent to that particular business.

Online business insurance platforms excel with ultra-simple scenarios. A freelance graphic designer needing basic professional liability? Perfect. A contractor needing general liability for a specific project? Digital works great.

But a restaurant owner dealing with complex liability, property, workers’ comp, liquor liability, and cyber concerns? That’s where most business owners prefer working with someone who can explain options, recommend appropriate coverage levels, and help them avoid costly gaps.

The Hybrid Reality Nobody’s Talking About

And here’s what’s actually happening in the real world:

Customers want both digital convenience AND human expertise.

They love getting business insurance quotes online, comparing options, and researching coverage types without sitting through lengthy sales presentations.

But they also want access to an expert who can answer questions, provide guidance, and help them make informed decisions.

What We’re Seeing at IronPoint

In our experience, business insurance customers need agent involvement at some point in the process—even if they don’t realize it going in. They might start convinced they can handle everything online, but reality has a funny way of humbling even the most tech-savvy entrepreneurs when they’re staring at policy language that reads like it was written by caffeinated lawyers.

The typical journey looks like this:

1. Research phase: Online comparison shopping, reading reviews, getting preliminary quotes
2. Decision phase: “I need to talk to someone who can explain what I’m actually buying.”
3. Ongoing relationship: Claims support, renewal guidance, coverage adjustments as the business grows

Good luck getting that kind of hand-holding from a computer when your world is falling apart and you need someone who actually cares about your business.

The Future Isn’t Agent vs. Online Business Insurance—It’s Agent WITH Digital

Smart agents aren’t fighting technology—they’re embracing it.

They’re using digital tools for:

• Faster quoting processes
• Better client communication
• Streamlined policy management
• More efficient service delivery

While still providing the human expertise that clients value for complex decisions and ongoing support.

The businesses thriving in this evolving landscape offer the best of both worlds: digital efficiency with human expertise.

Our Friendly Online Business Insurance Reality Check

Look, we have nothing but respect for NEXT Insurance and other companies pushing digital innovation. Competition makes everyone better.

But let’s be honest about headlines vs. reality. If this survey were actually representative, why is NEXT now actively appointing agents and brokers to distribute their products? We can even place NEXT policies for clients today.

If 60% of business owners truly wanted to buy online business insurance without any agent involvement, the thousands of successful independent agencies across the country would have already closed their doors.

Instead, what we’re seeing is an industry in transition, where smart businesses are figuring out how to combine digital efficiency with human expertise.

Here’s a little contrarian take on NEXT’s own survey: if buying business insurance online is so universally preferred, why do 40% of their own customers prefer an agent?

The Bottom Line on Online Business Insurance

Whether you’re researching online business insurance options or wondering if you need an insurance agent, the real takeaway is this:

The future belongs to those who can offer both convenience and expertise.

At IronPoint Insurance Services, we’ve built our approach around this reality. We’ll help you research options quickly and efficiently online, but we’ll also be there to:

• Answer your complex questions
• Advocate for you during claims
• Adjust your coverage as your business evolves
• Provide ongoing risk management guidance

Because sometimes, the most important conversation isn’t the one you have with a computer screen—it’s the one you have with someone who actually understands your business and wants to help you protect it from critical business insurance coverage gaps.

Ready to Experience the Best of Both Worlds?

Don’t choose between digital convenience and expert guidance. Get both.

Contact us today for a consultation that combines the speed you want with the expertise you deserve.

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