Despite the rising demand for business insurance, many independent agents are hesitant—or outright resistant—to enter the commercial space. Whether you’re an agency owner wondering why your producers aren’t cross-selling to business clients, or you’re an agent yourself questioning where to start, it’s clear that commercial insurance remains an underutilized growth opportunity. So why aren’t independent agents selling commercial insurance? The answer isn’t simple, but it’s solvable.
1 – It Feels Too Complicated
Commercial insurance is a different animal compared to personal lines. Selling a homeowner’s policy is vastly different from writing a Business Owners Policy (BOP) or a custom liability package for a contractor. Each business has unique risks and exposures, which means agents need to have:
- A deeper understanding of industry-specific risks
- Familiarity with complex coverages and endorsements
- Confidence in communicating with underwriters and business owners alike
Many agents enter the industry through personal lines or life and health, and few receive formal training in commercial products. Without the right training or experience, many agents don’t feel confident selling business insurance—and that’s understandable.
2 – The Sales Cycle Takes Longer
A common complaint from agents is that commercial sales take too long. And they’re right—at first. Quoting a business policy typically involves:
- Gathering detailed business and financial information
- More back-and-forth with underwriters
- Navigating carrier appetite and guidelines
- Reviewing complex quotes and coverage differences with the client
Compared to a quick auto or renters policy, commercial insurance can seem like a mountain of effort—especially when the client only wants a $1,200 BOP. For busy agents trying to hit quotas or close sales quickly, the extra workload can be a deterrent. Some agents also find it frustrating when the commission doesn’t feel worth the extra time.
However, business clients tend to stay longer and refer more people, making them highly valuable in the long run.
3 – Market Access is Limited
Many independent agents—especially those newer to the industry—don’t have access to the commercial carriers they need. Without strong market access, it becomes harder to serve commercial clients competitively or profitably.
Others don’t write enough commercial business to maintain appointments. This can make it tough for agents to find competitive quotes or secure coverage for niche industries. Agents may lose deals to competitors or feel stuck offering incomplete or overpriced solutions.
The good news is that working with MGAs (managing general agents), wholesalers, or agency networks (like ASNOA) can help bridge this gap and expand your market access.
4 – Fear of Making Mistakes
It’s natural to worry about missing something important on a commercial policy—especially when business income or liability limits are involved. Commercial insurance does carry more liability for the agent. Agents often avoid commercial insurance because they’re concerned about:
- Misclassifying a business
- Leaving out important endorsements
- Facing an E&O (errors and omissions) claim
One missed endorsement, incorrect classification, or improperly written certificate of insurance (COI) could open the door to an E&O claim. That’s intimidating—
especially for agents who don’t feel like experts yet.
Instead of risking a misstep, many agents prefer to stay in their comfort zone, where the policies are familiar and the stakes feel lower. This is where mentorship, continuing education, and carrier support can make a world of difference.
5 – Lack of Confidence and Sales Strategy
Commercial insurance isn’t just about knowing the product—it’s also about prospecting differently. Many independent agents:
- Don’t know how to identify or target local business prospects
- Feel awkward walking into businesses or cold-calling
- Haven’t identified a niche or vertical to focus their efforts
A lot of agents don’t sell commercial insurance because they don’t know how to start. Without a clear sales plan or target market, commercial prospecting can feel vague and ineffective.
It’s true that commercial sales requires a different kind of outreach. Agents may need to cold-call businesses, build partnerships, or focus on a specific industry or niche. It’s no wonder many agents default to their usual personal lines pipeline.
6 – Lower Commissions (Initially)
Small commercial accounts often don’t generate large commissions. A $1,000 policy might yield $100–$150 in commission—often after hours of work, which can be discouraging. Compared to bundling a home and auto policy or selling a Medicare Advantage plan, the upfront ROI isn’t always attractive.
But small commercial clients often grow—and bring referrals with them. Agents specializing in commercial insurance often find that the lifetime value, retention, and referral potential far outweigh the initial sale. In fact, many agents find that over time, their commercial book becomes their most stable and profitable line of business.
7 – Agents Stick With What They Know
In any profession, people tend to do more of what they’re good at—and less of what feels difficult or unfamiliar. Most agents build their early success in personal lines or life and health insurance. Commercial feels like a different world, so, for many, it’s easier to double down on what’s already working.
If an agent is successfully selling auto, home, or life insurance, there’s little motivation to start from scratch in a new vertical. Some even feel like they’ll lose momentum in their primary lines of business if they “divert” to commercial.
But if long-term growth and business diversification are your goals, commercial insurance is one of the most powerful ways to build a strong, recession-resistant book.
How to Break Into Commercial Insurance
Ready to get started? Here are some simple ways to make commercial insurance part of your strategy:
- Start Small: Begin with local small businesses like photographers, consultants, or retail shops. These accounts are often straightforward, easy to quote, and great for building experience.
- Pick a Niche: Specialize in one or two industries, like contractors, beauty salons, restaurants, or health professionals. The more you focus, the faster you’ll learn. You’ll build confidence and become more efficient over time.
- Partner With a Commercial Mentor: Don’t go it alone. Shadow a more experienced commercial agent or join a peer group. Learning through real-life case studies can speed up your learning curve dramatically.
- Use Carrier Resources: Carriers often have quoting portals, training webinars, and appetite guides that make it easier to write commercial lines. Take advantage of them!
Don’t judge commercial sales solely on the first commission check. Consider the long-term value—the retention and referral potential from business clients is well worth it.
Final Thoughts
Commercial insurance doesn’t have to be overwhelming. With the right training, tools, and support, independent agents can confidently step into this high-potential market. Those who commit to learning, developing a niche, and forming the right partnerships can unlock consistent, scalable growth. If your agency is ready to grow, develop deeper client relationships, and build more stable income—commercial insurance is a smart place to start.