Small-business owners are more likely to use AI tools than human agents when researching business insurance, and most say they trust the results. A survey from ERGO NEXT found that 36% of entrepreneurs have used a chatbot or search tool to look up business insurance options, compared with 31% who ask an agent. Among those who used AI, 94% said they trust the information they received.
AI as an education tool
The survey, conducted among 501 U.S. small-business owners, founders, and sole proprietors, suggests AI is changing how business owners approach coverage. "AI is lowering the barrier to understanding insurance and is giving insurance buyers a way to educate themselves on their protection needs," said Effi Fuks-Leichtag, chief product officer at ERGO NEXT. "To me, this signals a more informed buyer who wants to better understand their risks and coverage options before making a decision."
That trust is not absolute. Thirty-one percent of respondents said they trust AI tools more than other sources, while 63% said they trust them about the same as other resources. Only 7% said they trust AI less. For agents, the shift means clients may arrive with more baseline knowledge, which Fuks-Leichtag said allows agents to focus on complex decisions. "That means their expertise and ability to build trusted relationships with clients is more important than ever."
Insurance professionals looking to understand how these tools are reshaping client expectations can explore AI for Insurance resources.
Coverage gaps among small businesses
The survey also highlighted persistent gaps in coverage. Twenty-five percent of small businesses have no insurance, and 64% of those with coverage say they are underinsured. Among businesses without insurance, 50% said it's too expensive and 20% said it's too confusing.
Newer businesses are more likely to carry coverage. Companies founded within the past year are more likely to have insurance than those that have operated longer, according to the survey, though many still struggle to determine what coverage they need. The survey was conducted between April 29 and May 12.
Why this matters for insurance professionals
Agents should expect clients who have already run their own research before the first conversation. That shifts the agent's role from explaining fundamentals to validating information, correcting misunderstandings, and advising on coverage that AI tools may not fully address. The data also points to an opportunity: with 64% of insured businesses saying they are underinsured, agents who can clearly explain coverage gaps and costs may find a receptive audience.
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