****Help please Respond*****

[djackson]

Currently, I am looking for some information from you guys in the property and casualty space. Let me begin stating we are not Insurance brokers/agents we are in the cyber security space.
The question is how do we legally offer compensation to brokers for introducing us to their small business clients.
1) We believe it would be mutually beneficial to insurance brokers that are offering cyber security policies as we can determine the risk factor and help insurance companies determine the risk related to the cyber policy
2) Brokers that are not offering cyber security but offer small business liability would be able to profit from introducing our firm to their clients.
Our company is looking to scale quickly and we believe this may be our opportunity what we do not want to do is run into any legal issues later. To keep our lawyer fees to a minimum is why I bring this question to the forum first.

 

[insurance1822]

I know an insurance agent can't pay for referrals unless the referral source also has an insurance license. What you're describing isn't that so on that basic level, it doesn't sound like a problem.

I think you agents pumping volume like this would be large brokers & MGA's as most retail agents aren't doing enough cyber for it to make sense. If anything, maybe carriers who offer the coverage would be interested in your services to essentially cyber inspect risks they take on.

Not sure where your market is there but a few angles to consider. I would think senior level product managers at insurance companies would be the place to hit up on linkedin etc.

 

[djackson]

What about small firms who do small business liability if we offer them $250 per closed client do you think that would interest them enough to open their book of business and give us the referrals?

 

[ARus]

Currently, I am looking for some information from you guys in the property and casualty space. Let me begin stating we are not Insurance brokers/agents we are in the cyber security space.
The question is how do we legally offer compensation to brokers for introducing us to their small business clients.
1) We believe it would be mutually beneficial to insurance brokers that are offering cyber security policies as we can determine the risk factor and help insurance companies determine the risk related to the cyber policy
2) Brokers that are not offering cyber security but offer small business liability would be able to profit from introducing our firm to their clients.
Our company is looking to scale quickly and we believe this may be our opportunity what we do not want to do is run into any legal issues later. To keep our lawyer fees to a minimum is why I bring this question to the forum first.

I think here is misunderstanding from the following posts. Also I thing your big market are companies who are offering IT support and don;t offer what you are offering. Also risk managers and companies who are offering risk analyses.

I would like to discuss some details about your services. Can you send me an e mail? Thank you.

 

[Botboy141]

What about small firms who do small business liability if we offer them $250 per closed client do you think that would interest them enough to open their book of business and give us the referrals?

My answer. Hell no. I wouldn't open up my book of business to anyone for a measly $250. I refer you into to just one client that you drop the ball on and it takes me 100 closes on your end to make up for the loss of one client.

Commercial insurance is a relationship driven business. If I am confident that you can provide value to my clients, i'll refer you in all day long as the need arises for them. If I don't have that relationship and confidence in you, that dollar amount would have to be at least 10x higher for me to consider it.

Legally speaking, you can pay us whatever you want, similar to payroll companies paying us to refer business, or PEOs. Again though. I have a dozen payroll companies willing to compensate me to refer them business but I only refer to one, and guess what, they don't comp me. I am confident of their ability and they refer us loads of business.

A mutual referral relationship is infinitely more profitable for both parties than incentives.

 

[djackson]

Botboy141 thank you for the honesty.