Where the "Real Mon$y" Is....

[Davis B]

Hi Friends,

I've been viewing the PC site and getting prepped for my exam. However, i don't see many people posting threads on Real Money making ops in PC. Most are commenting about selling auto policies, individual HO Policies....not much $ or excitement here.

I don't know much about it..but from talking with and visiting agents in my area who focus on commercial, it seems to me the The Big Money is in

-Commercial policies (property)
-Workers comp
-Biz Liability

Seems to me that agents should be focused on the above.

• Why is no one talking about landing these type's of accounts?
• Is there another forum that focuses on these products?

Thanks for your constructive input...

~your fellow warrior agent
Davis

 

[nyc2phi]

Davis,

There are plenty of threads on here about commercial insurance and yes you are right there is a lot of money invovled with commercial accounts..

However, "biz" liability and workers comp and not areas for me that come to mind when I think big premium accounts. Big premium accounts are "middle market" type risks such as large grocery stores, apartment complexes/buildings with 20 or more units, and restaurants

These accounts are not easy to come by and if you dont have a steady source of business coming in you could starve while waiting to close one of these big accounts

 

[TonyC]

@ny

There is money in WC coverage...about 10% on the premiums. Some co's give away WC to get the biz liability and PC coverage for the buildings, vehicles, etc.

 

[benwrigh]

Depends on the where you are. For our agency, rural Indiana, farms are where the money is. There are no big commercial accounts to get out here.

 

[Herkster]

Depends on the where you are. For our agency, rural Indiana, farms are where the money is. There are no big commercial accounts to get out here.

I'll second that opinion, location matters to what you will be able to market towards.

We are located in rural Iowa, so we are similar to Ben, crop insurance and farm insurance are our big hitters.

 

[DivineFoodie]

Hi Friends,

I've been viewing the PC site and getting prepped for my exam. However, i don't see many people posting threads on Real Money making ops in PC. Most are commenting about selling auto policies, individual HO Policies....not much $ or excitement here.

I don't know much about it..but from talking with and visiting agents in my area who focus on commercial, it seems to me the The Big Money is in

-Commercial policies (property)
-Workers comp
-Biz Liability

Seems to me that agents should be focused on the above.

• Why is no one talking about landing these type's of accounts?
• Is there another forum that focuses on these products?

Thanks for your constructive input...

~your fellow warrior agent
Davis

In general, just from listening to people talk (that I know personally), and from reading forums. People are comfortable with things they know, ie, personal lines. Most people can relate to: homeowner's policy, auto policy, renter insurance, but it's difficult for them to get a Commercial Package Policy, because it's a bit foreign to them, and there are a lot more nuances to a CPP policy than there is to a general personal lines policy

When I told one of my friends I was getting back into insurance (she sells personal lines), she said, "Oh, that's great! I get some people asking me about Commercial/Business policies, and I'm scared of those, so now I can refer them to you, since you know that business."

I worked in E&S/Surplus Lines for a long time, so Commercial policies don't scare me, BUT, I do know that there is a lot more risk of E&O issues, than personal lines policies..

 

[Davis B]

Thanks Divine...

Are you saying that ES lines are where its at for making $

...
I worked in E&S/Surplus Lines for a long time, so Commercial policies don't scare me, BUT, I do know that there is a lot more risk of E&O issues, than personal lines policies..

 

[DivineFoodie]

^^In a word, "yes." It's not easy, and there is a LOT to know; hence the reason, everyone always says to "pick a niche." With that being said, I adjusted specialty/high risk claims, as well as managed in Premium Audit/Collections, and I can tell you that I had premium audits that the business owners oftentimes OWED over 100k, and that was in addition to what their initial premium payments were.

That's why it's imperative to get those things right when initially writing a policy (especially for a pre-existing business), because most business owners do not/did not think highly of getting struck with a HUGE premium audit bill; although, some business owners "gamed" the system. I won't go into that...it's another story for another day.

Commercial & Surplus lines can be very lucrative, but it's not easy to break into initially, and most of those business owners know what is going on, so you have to be on top of your game, as they will question everything.

Good luck with whatever area you decide to do!

 

[Justin Bilyj]

Just went to a Farmer's Market today, great place to prospect! Was talking to a lady about her liability, she sells soaps and lotions. She said State Farm wouldn't cover her, and since I am a broker, I can shop different companies to find her the coverage she needs.
Got a few other prospects as well.

I am getting into a bond opportunity, here in Ohio, there's a company for high-risk companies that have the lowest premiums and a month to month billing program (hard to find for high risk), and they will give free lists of companies in a given area they don't have under their book yet, which is a great door opener for b2b.

 

[DivineFoodie]

@Emptyeternity - that's great! I don't know a whole lot about bonds, but I want to eventually (once I PASS my tests and actually start selling policies) learn more about them, as I believe GC's and others oftentimes have to get bonds. It's good to network with a company that has some value to add for your line of business(es).