Summer 2025 Small Business Outlook for Producers

Summer 2025 Small Business Outlook for Producers

Get the scoop on trends, economic factors, and other insights that are impacting small businesses across the country to help steer your selling strategy.

According to the US Chamber of Commerce, “while owners are still optimistic about areas like hiring and investment, there’s growing anxiety around financial stability, which means businesses may take a more cautious approach heading into Q2.” 

Get the pulse and sentiment across small businesses now, learn what the outlook holds for the rest of the summer, and tips for leveraging this intel while selling.

Almost 40% of SMB owners expect to add staff, and that number jumps to 65% for  the SMB manufacturing sector

• That means likely 40% of your existing book of business will be adding headcount – so this should be a standing touchpoint in all conversations, reminding them of how a growing headcount impacts their policies and coverage

66% of SMB owners say they’re comfortable with cashflow – down 10 points from Q4 2024

• When cashflow is not an issue, your clients may save more by purchasing an annual policy paid for in full. As for the 34% for whom cashflow is a challenge, an annual policy with monthly installments, a Thimble Monthly policy, or a short-term policy may help offer short-term respite. Ultimately not having insurance is the costliest, so helping clients weigh their options is vital.

58% of SMB owners sited inflation as a major challenge this quarter

• With increasing costs surprising SMB owners around every corner, they’ll be eager to purchase and lock in a premium they know they can afford (or at least know what to expect). So by selecting an annual policy (paid up front or monthly) your insured will enjoy predictable budgeting – at least for this line item – until the policy expires!

Selling Business Insurance Through Economic Uncertainty

Despite geopolitical tensions, policies, and other various uncertainties weighing on the SMB market, business insurance remains a vital service. Insurance helps protect businesses of all kinds fortify instead of face financial hardship, which is even more important during unpredictable times.

• Help your clients see all of their options. This includes weighing short-term versus long-term policies, paying up front or monthly, and more.
• Help clients anticipate how business changes impact their policy, from revenue to headcount and beyond.
• There are always businesses who thrive in a downturn, so don’t make assumptions that all your clients are struggling.
• Remind clients that under-insuring or cutting corners on policy coverages may appear less costly up-front, but it’s an easy way to end up with a bigger financial hardship.
• Accelerating digital and AI attacks make cyber insurance a no-brainer, and this coverage applies to almost all business types these days.

Want to discuss a personalized approach with your territory manager? Book a call today!

Updated June 04, 2025 23:42