By Tyler Hunter
If you’ve ever tried to figure out whether your business counts as “small,” you’ve probably run into a frustrating truth: it depends who’s asking. The Small Business Administration defines it one way. Your bank might define it another. And when it comes to insurance, the definition that actually matters is the one your agent uses to figure out how to protect you.
How does MBG define a “small business”?
At MBG, we define a small business as one that’s privately held and actively run day-to-day by the owner — not a franchise-style operation managed by outside staff or a corporate structure several layers removed from ownership. On the insurance side, we typically consider a small business to be one carrying under $100,000 in total annual insurance premium, with most of our small business clients falling between $25,000 and $50,000.
That’s a meaningfully different bar than the federal government’s. The SBA generally classifies a small business as having fewer than 500 employees in manufacturing, or under $7.5 million in annual revenue for most other industries — numbers that can describe a company with dozens of employees and a management team. Our definition is narrower because it’s built around what we can service well: hands-on attention from a real person in the office, not a call center or an account that gets rotated to whoever’s newest on staff.
Is it based on revenue, employee count, or something else?
For federal programs like SBA loans, business size is based on employee count or annual revenue, and the exact thresholds vary by industry. For insurance, we look at it differently — total insurance premium is a much better indicator of the complexity and risk we’re taking on than revenue or headcount alone.
A landscaping company with 15 employees and a professional services firm with 3 employees might both fall well within our small business range if their total premium sits under $100,000. It’s less about how big the business looks on paper and more about the actual exposure we’re insuring — and that’s what determines the level of service and attention it gets from us.
Do you still work with businesses that don’t fit that mold?
Yes. Our sweet spot is owner-operated businesses under roughly $100,000 in total premium, but we work with a range of commercial accounts across Missouri and Arkansas. If a business has grown past that range, or carries more complex risk — multiple locations, larger payrolls, specialized operations — we’ll still have a conversation and either handle it directly or point you toward the right resource.
Why does MBG focus on this size of business?
Because it’s where independent, local service makes the biggest difference. Large brokerages have the knowledge to help small business owners, but not always the time — smaller accounts often get routed to the newest hire or a virtual assistant. Captive agents, meanwhile, are often limited to one company’s product shelf, which can push business owners into coverage that doesn’t actually fit — square pegs in round holes. We wanted to build something different: a place where a $30,000-premium account gets the same live person, the same direct line, and the same attention as any other client.
If you’re not sure whether your business fits our small business definition — or you just want a second set of eyes on what you’re currently paying for — visit our small business insurance page or reach out to our team in Missouri or Arkansas. We’re happy to walk through it with you.