I Want to Start with Garagekeepers- Garage Liability

[sixcoronas]

This is my first post. I've been reading and searching for a few days. Great resource here. I'm glad I've found it.

I have an established business serving independent auto dealers and and auto repair shops. I've been doing this for 15+ years.

I want to start offering commercial lines to my clients. It's a niche market market and I see a need that I believe I can cover.

I have had my P&C for a few years, kept up with my CE and have A&O, but I've never done anything with it. I'm not completely green, but I'm sure there is plenty for me to learn.

My goal is to slowly build a book of business and gradually make this the primary focus of my business. I have an home office and no employees. I could see getting an office and staff in a few years if this is successful.

I have spoken with Smart Choice and they seem to be a little weak in my specialty market. I've considered reaching out to an established agency and inquire about being a producer.

Any advice?

Thanks in advance.

 

[rodayy]

Try and get contracted with Selective

 

[indienoise]

Talk to appalachian underwriters. Relatively low annual fee, which can be waived if you produce dnough, and they have markets specifically targeting dealers, repair shops, and w/c. They have other lines you can supplement with as well. Direct appointments will be hard to come by if you have no experience.

 

[xrac]

Offering garage keeps insurance alone would be a mistake. Those businesses also must have general liability, building coverage, workers compensation and perhaps auto. You will need to offer all of these.

 

[djs]

Unfortunately, P&C isn't something that is well suited to 'starting slowly' on your own. This is for many reasons:

- The cost of having your doors open on a monthly / annual basis is pretty high. From E&O insurance to raters to everything else, dabbling can be expensive.

- Carriers want production. Well, the better carriers do. You can work around this a bit, but it costs extra as in usually lower commissions. You wont get and keep solid carriers without a firm commitment to producing. In some areas, you need to have a track record of production to get the appointment.

- No office. Some carriers are okay with this, many aren't. You might be okay if the carriers you need will allow it, at least up front.

In the pro column:
- Niche markets are awesome. Its the fastest / easiest way to be seen as the person with the answers and become the go to person to solve the problem.
- You have an existing client base to leverage.

Good luck!

Dan

 

[sixcoronas]

Thanks guys. I'm well aware that I would need to offer other policies than just garage keepers.

When I say starting slowly, I mean that I am not dependent on income from it. I'm willing to dedicate almost full time hours to it. I just need a round or 2 of golf every week.

I'm sitting on a contract with Smart Choice. It seems easy enough to get started. My concern is that they only offer 2 commercial line plans and I have no idea if they will be competitive on rates.

Would I be better off reaching out to an existing agent that specializes in the same market and working as a producer?

My end goal is in 5-10 years is for this to be the main focus of my business and have my children working with me.

 

[robtmccarthy]

My two cents.. since it sounds like you have some connections at garages. Talk to them. see what insurance carriers they have and who has good coverage at a good price. and find a way to work with that insurance company.You shouldn't have to much of a struggle at least figuring out if smart choice is right if you get a looksie at a few policies in your area.