Commercial-Premiums Between $10,000-$50,000

[XdateNotSexDate]

Every industry has premiums that can be that high. For example, if you are targeting Subway franchisees, the premium for a single location might be $3500-$4000 for the BOP and WC, but if you find the franchisee that owns 10 of these you can easily see how that can add up.

Find an industry you have interest in and are familiar with and target it from every angle. You will find that there is no real range of premiums, however you will master that industry and the larger players in that game will eventually find you.

This guy nailed it. Especially when you consider the huge rate deviations available in the commercial realm. I would add that as a focus, size/prem vol would be peripheral to the industry b/c if the operations do not fit your markets' appetite it doesn't matter what the premium is (usually) b/c they won't write the type of risk.

As far as resources for identifying suspects that fit the bill - I think your best bet is reference usa - it is freely available (just have to get yourself a library card), has good targeting criteria for size (in addition to geography, industry, etc) and has pretty decent contact info. It won't be exact, but eventually you should get a good gauge for what their size indication translates to for premium.

Another free resource, if you're in one of their states, are the residual market reports from ncci's site (go to their site, create a free account to gain access). This is actually telling you the estimated WC premium as well as estimated payroll they're running..and the WC Xdate. Draw backs are your list is made entirely of assigned risk business and there is no contact info so you've got another step in the process.

 

[Rick Deckard]

This guy nailed it. Especially when you consider the huge rate deviations available in the commercial realm. I would add that as a focus, size/prem vol would be peripheral to the industry b/c if the operations do not fit your markets' appetite it doesn't matter what the premium is (usually) b/c they won't write the type of risk.

As far as resources for identifying suspects that fit the bill - I think your best bet is reference usa - it is freely available (just have to get yourself a library card), has good targeting criteria for size (in addition to geography, industry, etc) and has pretty decent contact info. It won't be exact, but eventually you should get a good gauge for what their size indication translates to for premium.

Another free resource, if you're in one of their states, are the residual market reports from ncci's site (go to their site, create a free account to gain access). This is actually telling you the estimated WC premium as well as estimated payroll they're running..and the WC Xdate. Draw backs are your list is made entirely of assigned risk business and there is no contact info so you've got another step in the process.

The "no contact info" is not a problem, I need some clarity on "Assigned Risk" and why that is a draw back, thanks.

-Reference USA
-NCCI website...WC Prem, Payroll, WC X-Date...(jot down into the mastermind notebook)

Thank you so much for your feedback and words of wisdom.

 

[XdateNotSexDate]

Assigned Risk means no one was willing to insure them voluntarily. They tried to get coverage and everyone said 'no'. So they get assigned coverage, it is a last resort. They usually get there because of a poor loss history or high hazard operations, or a combination.

The draw back is, unless you have the right markets available, you are going to have a tough time getting them out. As with anything, the difficulty is the opportunity I guess.

A lot of new ventures get tossed in the A/R market b/c no prior history is usually a red flag to decline and get left there as the years pass b/c of neglect. These accounts should present good opportunity.

Here is a short article that elaborates a bit -

https://www.insurancexdate.com/blog/15/overview-of-voluntary-assigned-risk-markets-of-last-resort