Selling commercial insurance to business owners

mike6075 · 08-14-2008, 11:47 AM

I'm about to take the P&C pre license course. I thought I would start out by marketing and cold calling business owners offering them commercial insurance policies. For you experienced agents, is this a good way to go and can it be lucrative? If not, please advise me on other ways to sell P&C insurance that are more effective.

Many thanks in advance!

djs · 08-14-2008, 11:59 AM

Can be done.
Can be lucrative.

Very hard place to start. You'll need a mentor, someone who will really help you understand the ins and outs of commercial, someone who will help you define a target market, target SIC codes. You'll need a carrier that will write the type of business that you are after, etc, etc.

Homeowners and auto are very easy places to start, since you have some knowledge of the product from daily life. Commercial insurance is tougher. You'll start learning about fire suppression systems, gaylord hoods, completed products, payroll, product liability, garagekeepers coverage, on and on.... Commercial has a VERY steep learning curve, but once mastered, is pretty simple to get and reasonably lucrative if the right types of businesses are written.

I write a fair amount of commercial, though much of it is single person type of operations, usually office situations, low risk. It's not a big money maker at this, but it is extremely easy to write, people come to me since I'll write them (a lot of agents won't, not much money in it).

I've also written things like carpet cleaning operations. Fairly simple to write, includes issuing their bond, decent premium, includes at least one work truck, etc, etc.

I do not let myself get involved in any general contractor type of business, dump trucks, tow trucks, schools, sports activities, etc. These are lucrative to place, but a time sink if you don't do them on a regular basis.

It's all in knowing what you are after.

Dan

warrenins · 08-26-2008, 04:44 PM

Ditto DJS. Have a mentor. You can get into hot water quick with commercial insurance if you don't understand what exposures a business has.

saferoadinsurance.com · 09-10-2008, 07:21 PM

What would be a good way for me to get into selling commercial, I have a couple of customers interested in getting quotes for general liability but I don't know how to get started.

J-Ro · 02-15-2009, 08:54 PM

At some point I will get a P & C licenses. I own a cleaning svc and I'd like to specialize in janitorial insurance. Also, I would like to do this for companies throughout the U.S., not just Florida. Any advice on accomplishing this goal?

superfly33 · 02-17-2009, 09:05 PM

1.Figure out what risk(s) your company or companies are competitive in, in terms of rates and coverage.

2.Compile a list of prospects using the Yellow Pages and call looking for the owner and gathering expiration dates on their current policy.

3.Explain to them that your company specializes in their industry and you would like to offer them a competitive insurance proposal when their policy comes up for renewal.

I'm a rather new agent myself so I'm in the grinder all day trying to make sales and this has been working for me so far. When I'm there surveying, the employees also like to chat with me about their personal lines insurance so that's a plus for me.

SoCalBroker · 02-18-2009, 01:13 AM

Superfly / G Phong ,

I like your spirit. Hate to see you having to work so hard.

I been at this a while in Comm'l P & C ... I just sent you a package to your agency of some stuff I think will help you with your prospecting as well as client retention and most of all - referrals.

There's info, and something tasty as well .. you or the ladies in your office will enjoy ...

Just showed it to a 10 yr vet who's a phd in psychology and ran a very successful Advertising agency prior to a 3rd career in insurance - dude doesnt have to work - he has fun meeting people and selling [trip on that?] He does 401k and Group benefits. He saw today what Im sending you, and about had a canniption - wishing - like I was that we had this about 15 yrs ago ...

Hope it helps you ...

Steve Aylor
Insurance Referral Solutions
www.4morereferrals.com

Could a 5 minute video change the way you do busines forever? Did me ...
www.4morereferrals.com/5minutes

tclark199 · 02-22-2009, 01:14 PM

How can I get one? I'm just starting up and looking at ways to increase my customer base. Thanks

warrenins · 02-23-2009, 05:25 PM

J-Ro one place to start looking might be an association for jant svcs. International Janitorial Cleaning Services Association
They may or may not have a program in place but that might be a good industry specific place to start. They may let you be an "associate member" and offer your products. The fact that you have experience is a bonus because you can talk the "lingo" and understand their problems. Of course you need to find the carriers that want that business and are good at what they do, ie pricing, service, and product specific coverage. That shouldn't be to hard to do

J-Ro · 02-26-2009, 01:17 PM

Originally Posted by warrenins

J-Ro one place to start looking might be an association for jant svcs. International Janitorial Cleaning Services Association
They may or may not have a program in place but that might be a good industry specific place to start. They may let you be an "associate member" and offer your products. The fact that you have experience is a bonus because you can talk the "lingo" and understand their problems. Of course you need to find the carriers that want that business and are good at what they do, ie pricing, service, and product specific coverage. That shouldn't be to hard to do

I'm already a member with them and a couple other groups. Thats who I'm gonna work with upon getting the license. I was wondering if anyone knew of of some good carriers that I could possibly contract with. I guess it would help if they worked in all 50 states. Would I need to get licensed in each state?

SNJAgent · 02-26-2009, 02:49 PM

Originally Posted by SoCalBroker

Superfly / G Phong ,

Just showed it to a 10 yr vet who's a phd in psychology and ran a very successful Advertising agency prior to a 3rd career in insurance - dude doesnt have to work - he has fun meeting people and selling [trip on that?] He does 401k and Group benefits. He saw today what Im sending you, and about had a canniption - wishing - like I was that we had this about 15 yrs ago ...

Is this the program about sending out cards to clients? If so, I think it adds a great touch.

I'm not sure which I like better: Sending out cards, or Beach Broker's Newsletter idea.

moeasadi · 03-13-2009, 12:59 AM

I use pacific specialty insurance co. in Anaheim clifornia for janitorial. check em out.

PotentialFarmer · 08-30-2009, 05:00 PM

So Close to 20 posts. . . . Good luck, I'm going to be marketing a lot into the Commercial Market myself. I've had some success with small businesses, mainly fast food type establishments.

Amber Scherloz · 09-03-2009, 02:49 AM

Testing the waters will help a lot on your preparation. This way you can have a taste of what's in stored for you. Internet marketing can help a lot as a strategy in making sales for your P&C insurance plus the cold calling that you are already familiar with. Good Luck!

Jerbond · 11-02-2009, 05:45 PM

Commercial insurance is the "whale" of insurance premiums. But home and auto is your bread and butter. Those are super easy- everyone drives something, and everyone needs to sleep somewhere! The best way to sell is to offer the multi-policy disocunts. You can typically compete with the geicos and Mercury that way. I've found selling commercial to be very difficult. People are either too busy, or don't want to be burdoned with the insurance hassle. Try getting involved with your local chamber of commerce. You can build relationships pretty quick that way. Best of luck!