Question on Carriers

[juicy]

Was told I should ask in this forum also:
How can I find out which carrier types are predominant in my state?

For example, I was searching old threads and came across a guy saying that in his state of Kentucky, there are only 3 carriers that write for petroleum truck transporting/distribution. So he’s able to grab a lot of that business without much competition.

I’m in Missouri

 

[Markthebroker]

Predominant for what?

 

[juicy]

Predominant for what?

anything. I haven’t decided on a product or niche.
Is it just experience and learning about each company’s underwriting? Or is there a resource to look at. For the example I used, let’s say I was looking to insure a petroleum transport. How would I go about finding a carrier?

I know this may be a pretty basic question. That’s why I posted in the Newby forum initially.

 

[fed up]

what line of commercial businesses are you most familiar with? Have you worked retail? have you worked in restaurants? Have you worked in professional offices? Walking into a business that you have no clues about is a sure fired way to fail. A trucking company can have 6-12 different lines which need coverage, a retail store could depend on how many lines they sell. Focus on a business and then focus on the number of carriers you can offer.

 

[juicy]

what line of commercial businesses are you most familiar with? Have you worked retail? have you worked in restaurants? Have you worked in professional offices? Walking into a business that you have no clues about is a sure fired way to fail. A trucking company can have 6-12 different lines which need coverage, a retail store could depend on how many lines they sell. Focus on a business and then focus on the number of carriers you can offer.

I understand what you’re saying, but my question is more basic. But to answer yours, I have a real estate background. That includes commercial. I’ve also done insurance underwriting surveys for strip malls, restaurants, etc.

So my question is (assume I’m well-versed in restaurants), how do I go about learning the underwriting practices of each carrier? Is it just trial and error or is there a ‘faster’ way? I’m sure a mentor would help. But do research on my own, where would I go? Let’s say I want to offer a line to restaurants and I want it to be something few agents focus on- how do I find out which carriers to go to?

Is there a database or website that lists carriers and what they offer? I have been searching old threads, and have read that you can ask carriers what they write a lot of policies on to get an idea on how much business they’re doing in your area.

Let me know if my question doesn’t make sense and I’ll try to ask in a different way. And thanks for responding.

 

[fed up]

Best advice if you are looking to go commercial is to find an agency to work for so you can learn while you earn and let them mentor you. They will be able to answer your questions until you reach a stage where you are ready to leave the nest. sounds like you are trying to fly before your feathers have grown

 

[Markthebroker]

For example, I was searching old threads and came across a guy saying that in his state of Kentucky, there are only 3 carriers that write for petroleum truck transporting/distribution. So he’s able to grab a lot of that business without much competition.

Incorrect. He'll have lots competition for that business. That's big premium. In addition to using those 3 carriers, agents will lie, fudge paperwork, give kickbacks, etc.

 

[Markthebroker]

Listen to Fed Up. You think your answer is simple, because you don't understand the market. You are asking a very simple question, with a very layered complex answer.

 

[fed up]

Let's look at an easy example of how quickly something can go wrong: You go out and write your landscaper a commercial policy for liability. He drags his equipment in a trailer behind his pick-up truck. He tells you that his personal lines policy covers the trailer if it hits something because it is attached to his personal truck so don't write the trailer or the truck in a commercial auto policy. He is only worried about sending a rock through glass as he mows. Do you see a problem yet? And how many do you see?

 

[Markthebroker]

Let's look at an easy example of how quickly something can go wrong: You go out and write your landscaper a commercial policy for liability. He drags his equipment in a trailer behind his pick-up truck. He tells you that his personal lines policy covers the trailer if it hits something because it is attached to his personal truck so don't write the trailer or the truck in a commercial auto policy. He is only worried about sending a rock through glass as he mows. Do you see a problem yet? And how many do you see?

I think I was selling commercial insurance for about 4 or 5 years before I could completely answer that questions correctly.