Survey: 60% of small business owners buy business insurance without an agent or broker

Speed and convenience are driving small business owners to go digital with their business operations, including small business insurance. A recent NEXT survey shows that they’re increasingly turning to digital platforms that let them research, compare and buy coverage without an agent and 100% online. 

NEXT surveyed 1,500 small business owners in January 2025 to better understand this shift in how they buy insurance. Here’s what we found.

Jump ahead to dive into the numbers:

• Less than half of business owners buy insurance with agents or brokers
• One in four business owners research business insurance online
• Top 3 reasons people insure their business
• The business insurance knowledge gap — and coverage gap — persists
• 5 tips to make the most of small business insurance
• How NEXT can help protect your small business

Less than half of business owners buy insurance with agents or brokers

More than a third of survey respondents — 35% in total — now report they’re buying online directly through an insurance company, and 26% use a financial service to buy coverage. Combined, these two channels overshadow the 40% who report they buy using traditional brokers or agents.

An earlier PwC global survey reports similar results. It found 48% of small businesses prefer to buy insurance online. Half of the respondents buy insurance online directly from the company, while 28% use comparison sites or apps. Only 10% said they would use a broker or agent website.

One in four business owners research business insurance online

Small business owners are becoming more DIY when learning about their business insurance needs.

Our survey revealed that 24% of participants (roughly one in four) researched online before buying coverage for their business. Just 17% relied on an insurance agent for background information on which types of insurance they require.

To address this shift, insurers should upgrade their digital presence and educational resources, and develop guides to help business owners make informed decisions.

Business owners also relied on friends, family, mentors and colleagues (13%) to learn about insurance, as well as professional groups(each a source of valuable information for 8% of respondents).

Top 3 reasons people insure their business

Motivation to buy small business insurance falls into three buckets for survey participants. 

1. Legal compliance (22%): Some business owners choose to buy the least amount of insurance needed; just enough to stay compliant with the law.
2. Maximum protection (21%): These owners want the most amount of insurance protection they can afford to protect their business.
3. Selective risk coverage (21%): An equal number of small business insurance buyers prioritize just the policies to safeguard their operations against specific risks. This could include only focusing on liability protection or other types of coverage.

The results suggest insurers must offer flexible, tailored insurance solutions that cater to small business owners’ varying priorities, budgets and risk appetites. A one-size-fits-all business insurance model simply does not work.

The business insurance knowledge gap — and coverage gap — persists

Our most recent data shows that 36% of respondents feel small business insurance is unnecessary, highlighting insufficient awareness of risks and coverage benefits.

NEXT research has repeatedly found that small business owners don’t know enough about their small business insurance needs and lack the coverage they require.

We found previously that 90% of small business owners are not confident they have enough insurance. And 96% of owners failed to demonstrate a basic understanding of general liability insurance, one of the most common policies for business owners.

Another survey of restaurant owners this year found that 38% don’t have coverage, up from 29% the previous year.

This significant knowledge gap leaves small businesses vulnerable to unexpected risks and liabilities.

5 tips to make the most of small business insurance

Small business owners need to take action to secure the right coverage for their needs.

Use these five tips to guide you:

1. Rely on digital tools. Use online resources to compare business insurance policies and get customized quotes that fit your needs.
2. Ask for a customized policy. Don’t settle for generic coverage. Customize your policies and request flexible options to match your specific risks. Don’t pay for coverage you don’t need.
3. Seek transparency. Request clear, simple explanations from insurers regarding policy terms, pricing and claims processes to prevent gaps and surprises.
4. Understand your risk exposure. Seek coverage beyond just the legal requirement.  Conduct a risk assessment to define the right coverage level for your business, location and the work that you do.
5. Prioritize education. Look for insurers that offer educational tools and guidance to simplify insurance decisions.

How NEXT can help protect your small business

NEXT has affordable small business insurance packages that work for your business and your budget. We help small business owners in a wide range of industries find the right coverage for their needs. 

Skip the paperwork and phone calls and get your business insurance online in about 10 minutes. Just get a quote, select your options, pay online and get an immediate certificate of insurance that you can share as needed at no additional cost.

Easily manage your policies 24/7 via the web or our mobile app.

If you have any questions, our U.S.-based insurance professionals are available to help.

Start a free quote with NEXT.