Construction Insurance & Bonds ???

[zachkla]

Hello Everyone,

So, I am located in Los Angeles California, I have been doing my property and casualty insurance training in order to get my license. My father was a contractor for about 20 years building million dollar homes, so that's what I grew up around. I would like to sell construction bonds and insurance. I would like to sell surety bonds for contractors, and bonds and insurance for the actual build. I would also like to sell property and equipment insurance for contractors and trades alike, and also sell commercial vehicle insurance. I figured that this would be a great niche for my interests, and a profitable one if I can get in business. I can't count on having many business leads in the beginning but I do have a roledex of contractors, electricians, architects and a bunch of other people who new my dad before he died. Maybe selling to those people would be a good place to start??? PLEASE GIVE ME ALL THE IMPUT POSSIBLE, GOOD OR BAD, ANY ADVISE OR OPINIONS ARE APPRECIATED! Thank you,

Zach

 

[IndyGreg]

Things are slow here in Indiana. Just don't limit yourself to one niche market. Always a good idea to spread things out.
Get some good markets and work it you have a good insight I am sure.

Greg

Hello Everyone,

So, I am located in Los Angeles California, I have been doing my property and casualty insurance training in order to get my license. My father was a contractor for about 20 years building million dollar homes, so that's what I grew up around. I would like to sell construction bonds and insurance. I would like to sell surety bonds for contractors, and bonds and insurance for the actual build. I would also like to sell property and equipment insurance for contractors and trades alike, and also sell commercial vehicle insurance. I figured that this would be a great niche for my interests, and a profitable one if I can get in business. I can't count on having many business leads in the beginning but I do have a roledex of contractors, electricians, architects and a bunch of other people who new my dad before he died. Maybe selling to those people would be a good place to start??? PLEASE GIVE ME ALL THE IMPUT POSSIBLE, GOOD OR BAD, ANY ADVISE OR OPINIONS ARE APPRECIATED! Thank you,

Zach

 

[MedMalAgent]

Contractors are a good niche market to start with. You have to make sure you represent the companies that actually want contractors and are competitive on the pricing. In Michigan I have had a lot of success with Travelers. Contact a few of the ones you know and sit down to talk with them to see who they use and why. This may also be a good way to stir the pot.
Contractors will really help you out if you can save them some money. One thing we do is we quote all our contractors with $1,000,000 work comp limits. The increased limit factor isn’t that much and it allows us to really educate them. I ask “Frank” the contractor “How much does it cost to sew on a hand back on?” They usually laugh and I explain that a $100,000 WC limit is putting their company at risk for out of pocket expenses if someone really gets hurt. Education makes it much easier to fire the current agent. Also, you really should make sure your contractors do carry higher WC limits it is in their best interest.

 

[Markus D]

I think this would be a great niche.

How much competition is there?
Have you checked out the competition?
Have you met and talked with your target contractors?

 

[Todd Preston]

Get a list or all contractors and cold call them. Set appointments and proceed.

 

[BlockO]

One thing we do is we quote all our contractors with $1,000,000 work comp limits. The increased limit factor isn’t that much and it allows us to really educate them. I ask “Frank” the contractor “How much does it cost to sew on a hand back on?” They usually laugh and I explain that a $100,000 WC limit is putting their company at risk for out of pocket expenses if someone really gets hurt. Education makes it much easier to fire the current agent.

bravo! I like that. it's amazing how many agents won't bother to take less than 5 min to cover important coverages and educate the client. but it sure opens doors for agents who will take the time.