Commercial Insurance for Small Business

[Insuranceman]

I looking into getting my P & C license to sell commercial insurance to small business owners that has their health insurance thru me. Would this be a good market or a waste of time ?

 

[Philly]

Re: Commercial Insurance

I sell commercial insurance in MI it can be good. Avg premium though for small businesses are usually between $1500-$3,000 a year and at 10-15% commission. Also it's harder to get contracts for P&C. The E&O insurance is a lot more

 

[Air Jer]

Re: Commercial Insurance

Sure hope this was a typo:

small business owners that has their health insurance thru me.

 

[jamis0n]

Re: Commercial Insurance

in my opinion commercial insurance is way better than personal. You don't write as many policies, but the values/commissions are usually in the mid hundreds to multiple thousands

 

[markschneider86]

Re: Commercial Insurance

in my opinion commercial insurance is way better than personal. You don't write as many policies, but the values/commissions are usually in the mid hundreds to multiple thousands

That is very true, but the saying goes that you rather have 15 small policies, then 3 big ones, because if you loose a big one, you loose a lot of premium.

 

[Justin Bilyj]

Re: Commercial Insurance

What I did was partner up with a local P&C agency, who is splitting all the business with me that I refer to them. Very nice family oriented agency. Allows me to increase persistency and not leave any money on the table.

 

[jamis0n]

Re: Commercial Insurance

That is very true, but the saying goes that you rather have 15 small policies, then 3 big ones, because if you loose a big one, you loose a lot of premium.

I'd rather have the 3 because the service on those 3 will almost definitely be less than the 15 small ones

 

[Jerbond]

Re: Commercial Insurance

Plus, don't forget that Commercial policies are annual. That means that a termination fee can be assesed if they cancel their policy. Whereas the HO and auto policies could technically be cancelled and written every month! Commercial policies tend to stay with the agent/Broker for a very long time. Kind of hard to hit the renewal date if your cold calling, and business owners (I have found) are resillient to change. The home and auto are constantly being shopped for lower rates! Just my 2 pennies...