Whats Your "target Market" or Favorite Commercial Insurance to Sell?

I'm mostly a home/auto guy, but I work in an independent agency where I have the option and freedom to sell commercial lines as well with some outstanding carriers to choose from.

So I'm wondering what you guys' favorite target businesses are for P&C? Landscapers? Music shops? Industrial complexes? Coffee shops? Franchises?

I'm trying to find a niche that has moderate to high premium, with relative ease of underwriting (haha fat chance right??).

It seems like every producer has 2 or 3 areas they focus in, and I'm wondering what yours is, and why?
 
I'm mostly a home/auto guy, but I work in an independent agency where I have the option and freedom to sell commercial lines as well with some outstanding carriers to choose from. So I'm wondering what you guys' favorite target businesses are for P&C? Landscapers? Music shops? Industrial complexes? Coffee shops? Franchises? I'm trying to find a niche that has moderate to high premium, with relative ease of underwriting (haha fat chance right??). It seems like every producer has 2 or 3 areas they focus in, and I'm wondering what yours is, and why?

Find out what your best carriers appetite are and go after those.

Often you'll find carriers going after "Main Street" type business such as flower shops, drug stores, convenience store, etc.

I personally have been focusing on auto body shops because I have a carrier with a strong appetite for it.
 
1) Petroleum Marketers/Distributors (gasoline haulers) - Not many carriers write this class in Kentucky, only about 3 real players and I have one of them. That puts me with a seat at the table almost every time. We do well with them. The premiums can vary wildly depending on how much they haul or how many stations they own the property to. Smaller ones can be $25,000. Bigger ones can be $400,000+. Love this class because, again, it is a limited field and you better really know what you're doing or you can get burned badly.

2) Property Developers- Strip shopping centers. Malls. Basically just lessor's risk stuff and although most any company will write this I've got one that eats it up in our area. Main thing here is to be well connected to the property owners. That's 80% of the battle in this class.

3) Convenience Stores - Premiums are much smaller than the other two targets I just mentioned obviously. But a volume of it really adds up. A lot of times, as said earlier, the property is owned by the local distributor so all there is to insure is the BPP and liability for the store owner. We insure who knows how many hundreds of these things just from word of mouth among the owners or from the distributor sending them to us because of our expertise. It's a tie in sector so it allows us to corner an entire market somewhat.
 
These guys are giving you big premiums. Just so you know there is a lot to know about fuel delivery and body shops. garage policies get complicated and fuel delivery is just as complicated. Don't get in over your head wont be worth the E&O claim. Start with easy stuff video stores flower shops ect. Commercial is a whole new animal.
 
Good replies from all! Thanks for the insight, I agree that figuring out a carriers appetite is the first step. Then education education education!! Time to become an expert on Petroleum distribution lol
 
religious institution market was an eye opener for us...very limited competition...low losses...good closing ratio...very little service work

then it was on to finding other niche programs with the same characteristics

best of luck
 
This does not answer the question of the thread, but we have really enjoyed USLI as of late.


We love our access to Liberty Mutual, CNA, The Hartford, Travelers, Philadelphia, State Auto, Home State and many others as well.
 
Contact your carriers ask the rep what class codes they are writing the most of. This will let you know what industries you can compete in. No sense in spending time contacting people you cannot convert. Remember the difference between preferred class codes and sic's they are actually writing. Carrier reps will want you to push preferred business but that doesnt mean they are competitive and actually writing a lot of it.

As of now we have been hammering tech/data service companies. Data breach along with GL Travelers and Hartford have a big apatite right now for this stuff. High Premium - Low Loss last one we wrote was 31k premium for GL and Data breach alone.

The industry you choose has a lot to do with your location. Pick industries you can vibe with that fit your personality. I would stay away from Small Contractors other industries requiring certs - they are low premium and heavy servicing.

to start you can shoot for restaurants, hotels motels, Commercial Property, Distributors, MFG

I like these because they are easier to contact and bid from a cold call. (maybe not property manager haha)
 
I'm mostly a home/auto guy, but I work in an independent agency where I have the option and freedom to sell commercial lines as well with some outstanding carriers to choose from.

So I'm wondering what you guys' favorite target businesses are for P&C? Landscapers? Music shops? Industrial complexes? Coffee shops? Franchises?

I'm trying to find a niche that has moderate to high premium, with relative ease of underwriting (haha fat chance right??).

It seems like every producer has 2 or 3 areas they focus in, and I'm wondering what yours is, and why?

Farmers, hands down.
If we land a new farmer, we usually get the following policies:
Farm
Business Auto (semi or grain truck for hauling grain)
Umbrella
Personal Auto
Crop Insurance
Hail Insurance

A large farmer can easily bring in a 50-60k a year premium, most of that is due to crop insurance.

Hail insurance pays commissions that would make most guys drool, 20-25% of the policy premium.
Crop insurance premiums are heavily subsidized by the government, but we get paid commission (7-9%, not exactly sure what it is) based off the full premium, not the farmer paid premium.

An example of the last large farmer we landed here...
Farm premium - $10,500
Business Auto - $1,500
Auto - $1,200
Collector Car - $285
Boat - $201
Hail - $12,750
Crop Insurance - $42,000 before subsidy

Total: $68k
 
Back
Top