In the ever-evolving landscape of small business insurance, understanding and managing risk is critical to success. In a recent episode of Coterie Insurance’s podcast, “And I Quote,” host Ashleigh Burden welcomed John Morlan, the founder and CEO of Smarter Risk, to discuss innovative risk management solutions tailored for small business owners. Their conversation illuminated the unique challenges small businesses face in managing risk and the tools available to create a safer, more secure operational environment.
Meet John Morlan
John Morlan’s journey into the insurance industry is a testament to the unexpected paths life can take. After starting his career in life, accident, and health insurance, John transitioned to selling commercial insurance with Century Insurance. During this time, he was introduced to risk control—a field that captivated him from the start. “I was really fascinated with it, which I know probably sounds crazy to some people,” John noted, showcasing his genuine passion for understanding how risk management works. In 2004, John joined the Insurance Services Office (ISO)—now VeriRisk—as a loss control consultant. Over the years, he developed a love for engaging with small business owners and understanding their unique challenges. This experience laid the foundation for the idea behind Smarter Risk, which aims to make risk management more accessible to small businesses.
The Unique Risks Facing Small Businesses
John highlighted the distinct risks that small businesses face, particularly the limited resources available to manage those risks effectively. Unlike larger enterprises that typically have dedicated risk management personnel, many small businesses rely solely on their insurance policies as their risk management strategy. However, John emphasized that while insurance is essential, it cannot be the only solution. “The hard part for them is how do we provide risk control services, right? Because it’s really expensive,” John explained. Small business owners may think of insurance as their overarching risk management plan, but without a robust risk control strategy, they may find themselves vulnerable to unexpected losses.
The Impact of Claims and Uninsured Costs
John emphasized that a single claim could jeopardize a small business’s survival. Business owners not only pay higher premiums following a claim but also incur uninsured costs, including overtime, reduced productivity, and retraining expenses. He provided a startling statistic: it is estimated that uninsured costs can be two to two-and-a-half times the insured expenses. To mitigate these risks, John advocates for a proactive risk management program focused on claims avoidance. He noted that managing risk is not solely about compliance or legal obligations but is also a financial imperative for small businesses.
The Role of Insurance Agents in Risk Management
As trusted advisors, insurance agents play a critical role in helping small business owners navigate their unique risk challenges. John encourages agents and brokers to shift their focus. “The agent of the future isn’t just selling someone a policy or insurance. They’re really helping them manage their risk,” John stated. This evolving role positions agents to not only recommend insurance policies but also provide risk control solutions that can significantly benefit their clients.
Embracing Technology for Risk Management
John’s company, Smarter Risk, is at the forefront of leveraging technology to streamline risk management for small businesses. The partnership between Coterie and Smarter Risk aims to simplify the risk management process and reduce friction for small business owners looking to protect their operations. Smarter Risk’s app allows businesses to conduct risk assessments quickly and efficiently. John mentioned that what once took hours can now be completed in just 15 minutes with user-friendly technology. This approach not only saves time but also enables businesses to receive tailored recommendations that address their unique risks without overwhelming complexity.
Learn more about Coterie’s Manage My Risk Program.
Looking Forward: Exciting Developments
As they wrapped up the conversation, John teased an exciting new feature in the Smarter Risk app: a photo function that allows users to capture visual documentation of their risk assessments. This feature will evolve to include recommendations based on the photos submitted. This makes it even easier for small business owners to implement necessary changes. John emphasized, “Our mentality is, hey, let’s create an MVP of features, roll them out, get feedback, and then iterate on them.” This agile, customer-focused approach ensures that Smarter Risk continues to meet the evolving needs of small business owners.
In the conversation between Ashleigh Burden and John Morlan, it became clear that effective risk management is not just a necessity—it’s a critical component of small business success. By emphasizing the importance of personalized risk control solutions and leveraging technology, both Coterie Insurance and Smarter Risk are committed to empowering small business owners. The partnership promises to transform the way small businesses approach risk, ensuring they are better equipped to thrive in today’s dynamic marketplace.
Please listen to the full episode of “And I Quote” on Spotify or YouTube.
