Independent agents focused on personal lines have usually stayed in their lane because of market stability and constant demand. Meanwhile, commercial insurance seems daunting, with complex risks, evolving carrier appetites and changing regulations.

However, with the changing landscape in the personal lines market due to the hard market, personal lines agents may be thinking about diversifying their revenue.

Between March 2022 and March 2023, 1.2 million small businesses opened, according to the 2024 Small Business Profile from the U.S. Small Business Administration. These small businesses are in their nascent stages. Their owners are just getting started and establishing a relationship at the beginning of their journey will pay dividends down the road.

Also, the majority of these new business owners already have personal insurance coverage and agents with existing relationships can become a one-stop shop for them. And as a business grows, so do its insurance needs, creating more opportunities.

Commercial insurance requires agents to provide tailored coverage, and agents can leverage several technology solutions to make the transition into commercial insurance seamless. With the right solution, agents can quickly and easily fill in knowledge gaps, enhance operational efficiency and fortify their role as a trusted business partner.

A personal lines-focused agent likely already has tech solutions, such as project management software, cloud-based document-sharing platforms and instant messaging apps. But as your agency grows with the addition of commercial insurance, here are a few more tools to add to help tackle complex, commercial customers:

1) An agency management system (AMS). An AMS enables you to manage customer information and interactions, as well as leads and opportunities. However, an AMS extends these capabilities to include workflow management, risk automation, and sales and revenue management. Evaluate several AMS providers to ensure you find the right fit for your commercial book. In addition, vet their ability to quickly and easily integrate with your existing and other technology solutions.

2) Commercial quoting software. Because every business has a unique risk profile, commercial insurance underwriting is complex. Leading quote and bind solutions streamline this process by integrating multiple carriers simultaneously, ensuring accuracy and saving time by requiring just one universal application, rather than downloading multiple ACORD forms. Some platforms also provide guidance on navigating the thousands of North American Industry Classification System (NAICS) codes, removing the guesswork and closing coverage gaps. As carriers continue to update their appetite, a commercial quoting system can keep you up to date without memorizing the carriers' appetites.

3) Business intelligence applications. Business intelligence tools and processes can help you analyze data to make better decisions. They can also help you understand how your agency is performing, both in the present and the past. Ultimately, this leads to meaningful and actionable insights.

4) Digital marketing platforms. While nothing will ever replace a great referral, digital marketing can provide an alternative channel to help you break into commercial insurance. Digital marketing platforms can help you run targeted social and email campaigns, generate leads and share educational content.

Nicole Farley is vice president of carrier operations at Bold Penguin. Farley streamlines the small commercial quoting experience for agents and small business owners.