Referrals — time and again we hear how important they are. Buying business insurance is no different.
In a recent survey, the majority of small business owners say when buying business insurance, they are most influenced by referrals from friends and peers. That’s especially true among those without business insurance — almost 63% rank referrals from friends and peers as the most influential factor in buying insurance. And even for those who already have insurance, 54% said referrals were very influential.
And what influences small business owners buying business insurance the least? Direct mail.
I have a theory as to why referrals are so important. I think a lot of it comes down to complexity. We all would love to have business insurance simplified for us — and getting a referral helps make it simpler.
As more support for my theory consider one other result in the same survey. Over 73% of those without insurance said the most irritating thing about buying insurance is the explanation of coverage options. Yep, wading through all that legalese is nobody’s idea of fun.
Another reason referrals get so much weight: we tend to put our trust in peers and friends.
This information is from a survey about business insurance that I invited you to participate in about a month ago here on the site.
The survey was put together by Terri Lonier of Working Solo. It was sponsored by TechInsurance Group, LLC, America’s leading online provider of insurance to IT businesses and a wide range of solo professionals — www.techinsurance.com and www.businessinsurancenow.com.
See the summary survey results (Word .doc) — lots of interesting stuff there.