How Big is Too Big to Write

Indiana_Adam

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For the independent commercial guys, how big is too big of a client?

As a newer agent, I've no niche market so am hungry and open to all business types/sizes. We have several large companies headquartered in our area. I don't want to impose a low ceiling on myself, but don't want to waste time reaching out to businesses that will never be within my scope of writing.

Do you guys/gals use any certain guidelines to help you determine whether a particular business is too large for you to competently write/service?

I'm by no names focusing solely on these large clients, as I would starve doing so, but I don't want to miss out on writing some big business either. Can't write it if your not in the running.
 
From my experience. The premiums $15,000 and below tend to stay on the books but call for a lot more service work - certificates, adding and deleting equipment and liens etc. $15,000 - $100,000 are a lot less service work as they are USUALLY settled but the other agents are constantly knocking on their doors. 100,000 - 250,000 in premium are usually special risks that only niche agents tackle. It seems to be a lot of service but they usually shop less often as it is a hassle for them. As for 250,000+ I'm unsure as I've yet to find one. I have developed a niche market for higher hazard risks that a lot of carrier's won't entertain (logging, drilling, small fleet trucking, critical auto parts mfg) By doing this I have been the "go to" for these clients in my area. The clients know it's tough to find a local agent that can provide them all lines so they are hesitant to even shop.
 
For the independent commercial guys, how big is too big of a client?

As a newer agent, I've no niche market so am hungry and open to all business types/sizes. We have several large companies headquartered in our area. I don't want to impose a low ceiling on myself, but don't want to waste time reaching out to businesses that will never be within my scope of writing.

Do you guys/gals use any certain guidelines to help you determine whether a particular business is too large for you to competently write/service?

I'm by no names focusing solely on these large clients, as I would starve doing so, but I don't want to miss out on writing some big business either. Can't write it if your not in the running.

As a newer agent it would be hard for your to tackle a large account on your own. I would hope someone is guiding you in your office. That being said usually the larger accounts know a lot about insurance. Sometimes more than you, as they can not afford to not understand what they are paying so much money for. I'm just saying dont go in there hoping to bs your way through a meeting. They will smell a new agent from a mile away. Getting your foot in the door is usually the hardest part. If you can get that and bring someone along that is knowledgeable go for it. With great risk comes great reward.
 
Yes, one or both of the agency owners would be guiding and over seeing everything I do in regards to quoting and writing. Hell, they would most likely do most of the talking if I'm able to get in front of one and I'd be a fly on the wall. I've no desire to BS my way through it. When I say new, I have 3 years P&C experience on the personal side, but only 7 months on commercial. Different ball game in regards to scale and moving parts, but the basics are the same-ish. Getting foot in the door is my main goal.
 
In general, refer to jlanier's post above. Very good advice there.

Keep in mind, large accounts can take YEARS to close, if they close. They are usually accessed through the company sending out RFP (request for proposals) and then you have to write a book to get a quick meeting to decide if you can even apply to get the gig. Its done by committee and usually isn't worth the hassle unless you have carriers that are excellent at whatever it is the company does.

If you start with 50 employee and smaller companies, you will make a name for yourself pretty quickly. Know what you have to offer over any other insurance agent out there. This is why picking a few niches is good, you can get to be an 'expert' on insuring that niche. I had a friend once who pretty much made a living out of insuring bowling alleys. He went in not only knowing how to insure the business, but he could talk about the pin setting stuff, how lanes were taken care of, shoes, you name it. It was a passion of his that he made a business out of.

Insurance agents that are pilots do this all the time. They end up insuring a lot of the small businesses at the local airport because not only are they an agent, but they are a member of the airport 'community' and can relate on a personal level. I always wished I could afford to get my pilots license, get a plane and write that business.

Everyone goes after restaurants. I recommend skipping them. The powers that be at your agency won't let you though. Make sure you can deal with catering and there is a good opportunity to get in with a lot of mom/pop restaurants.

Dan
 
I'm a personal lines guy & I'd really love to get into commercial but it hasn't been working out so great. Anything that comes my way is usually crap from personal lines clients who have a poor claims history or it's a start up business who nobody else wants. So really I have no place talking about commercial but maybe this will give you some incite..

I have a $160,000 account just because I happy to know the decision maker of a larger business. Don't ever underestimate who you may know & what relationships can give you.
 
Dan, thank you for the response and the info. Do these larger companies typically have a list of agents/agencies on the RFP? So I need to get my name on that list before I even have an opportunity to meet or quote. Plus, if it takes years to close these, I may as well start building relationships now. Would getting my CIC or CLCS improve my chances?

Insurance, that large client is larger than my entire book right now. Be proud of that! That's awesome. I'm sitting at about $120K that I've built from scratch in the past 7 months, not great, but not terrible I don't believe. Slow and steady wins the race right?
 
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