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

[Rick Deckard]

I do not see a lot of threads where we ID potential Commercial accounts or businesses. It goes without saying you would like to have a mortgage shop if you want a faster path in personal lines.

I used to own a small moving company, we rarely if ever got a call from an insurance agent. Big insurance agencies like Brown and Brown, marsh, they own the Commercial market in my neck of the woods but they focus on premiums that are say $100,000-$200,000 minimum per year. Anyone in that range is getting visits 2-3 times a year from someone in those agencies...meanwhile back at the Justice League(1970s Sat Morn, oh yes I did) nobody picks up the phone or returns calls to the avg small business owner. At the same time you don't want to burn a lot of energy on owners who have premiums under $10,000 as their is a limit to our charity work here.

I need a list or guide to small business owners or simply businesses where the premiums are going to be in the range I listed on the title. All feedback welcome, all conspiracy theories will be fully vetted

Happy St Patty's Day! Let's do this!

 

[FL P&C Broker]

Homeowners/Condo Associations is one niche where you can generate some premium. Anywhere from $10k to $100k. Problem is sometimes that the board will want to put it for bid every year so you have to have a strong back office that can start quoting markets 60 days in advance from the renewal date.

If you can find a couple people that work at the property management companies you can get some nice referrals. I have a townhouse I just moved out of and our premium was $100k+ because they were insured like condos.

 

[Rick Deckard]

-Condo Associations
-Townhomes which are handled similar

Palm Beach County is 2nd in the State and perhaps the country for amount of HOA Fees either monthly/yearly, same difference I guess.

P&C Broker, great stuff and I know you are right on the money with Condo Associations.

 

[VolAgent]

I'd love to hear some other ideas. Not much in the way of condos here like in South Florida.

I have heard that there is good money in commercial accounts of that size. Not so big the big agencies call on them, but enough money to justify the time. I also understand it is generally one or two decision makers, so not a lot of layers to go through?

 

[Rick Deckard]

I'd love to hear some other ideas. Not much in the way of condos here like in South Florida.

I have heard that there is good money in commercial accounts of that size. Not so big the big agencies call on them, but enough money to justify the time. I also understand it is generally one or two decision makers, so not a lot of layers to go through?

Hey Vol, agree that we need a lot of ideas, Condo Associations are great but there are lots of small businesses out there and a lot of them do not get the kind of service they truly want.

I'll share something I asked a business owner today, lawn service if you need to know...I asked him what is one thing he wishes would happen?

His reply was "Even though I am likely to renew thru same carrier, would like to see 2-3 other companies to ensure I am not getting ripped off..." This is basically PRICE however what he is saying is that he would prefer even on a renewal that there are at least a couple others presented yearly as potential options...or at least once every other year/3rd year, he has owned the business for 2-3 decades and never gets a call from his agent.

This could be a great thread but my guess is anyone that is truly successful in this field is going to be shy on sharing the best targets. I wish there was a list published of companies in this premium range, would make it a lot easier. You can do the math but $25k yearly premiums, you only need a couple a month to go with whatever other business you might write(Luxury Homes-cough cough)

 

[hesse]

this is the rural Midwest but most residential contractors fall in that range.

 

[Comm_Ins]

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.

 

[Matt37]

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.

Yup.

Almost every industry has $2,500 accounts and $250,000 accounts.

The key is staying away from industries that are A) over saturated with carriers and extremely competitive or B) the clients tend to be terrible and extremely price sensitive (trucking, contracting, etc.)

The key is mastering the field and coming off as being the expert on that field.

 

[mr_furly]

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.

The other day I asked one of the guys that will be mentoring what niche I should get into.

This is essentially what he told me.

 

[Rick Deckard]

Cyber Security and folks who might have a big need for this.

Example...the company specializing in Cloud Storage in your area.
Small tech companies where they are especially prone to hacking.

I know some are thinking these companies can hire people for that...think about what you are saying as that type of thinking can be expanded into every company but the fact is 100% of all Commercial transactions happen thru an agent so one way r another they are buying insurance. Probably most of what is offered does not actually meet their true needs.

Just trading notes and throwing ideas out there.