In my home state of Minnesota, we have two seasons: winter and cabin season. Cabin season has finally arrived. The highways clog with RVs and trucks towing boats as people get out of Dodge and head up north to their cabins. I’m sure it’s the same in your neck of the woods during the summer months.
And while I’m all for a little recreation, I will also say that while the competition’s away, savvy independent insurance agents take advantage of the opportunity to write more commercial business.
The Commercial Advantage
Offering commercial insurance at your agency is one of the most profitable decisions you can make for your business. Commercial accounts tend to be larger than personal accounts, which means a larger commission check for you. Once they find an agent they can trust, business owners are also more loyal. They are less likely to leave an agency to save a few dollars if they feel their agent provides value. There’s also less competition in the commercial insurance market. Personal lines are inundated with captive agencies and direct writers. Personal lines products have become commoditized, making it difficult for agents to compete on anything but cost.
However, the commercial lines market remains an independent agent’s game, especially small commercial accounts, such as most Main Street businesses. In the United States, there are 31 million small businesses that need commercial coverage. That’s more than enough business to go around. Agents just need to take advantage of the opportunity.
The Commercial Hesitation
If there’s money to be made in commercial insurance, then why do so many independent agents hesitate to offer it at their agencies? In short, it’s complicated. Commercial policies are tailored to meet the needs of individual businesses. Agents must learn the ins and outs of their customers’ businesses to adequately protect them.
The commercial lines marketplace is a lot more complicated than the personal lines market. There are dozens of standard carriers in the commercial space. But there are also dozens of specialty carriers that write hard-to-place risks, such as car dealerships, taverns, landscapers, and tree trimmers. Navigating these carriers can be difficult if an agent is new to the commercial side of the industry.
The Smart Solution
If you’re new to writing commercial business at your agency, don’t let your lack of experience stop you from taking advantage of the opportunities writing commercial lines offers. If there’s a will, there’s a way. And Smart Choice® is here to help you, of course.
Smart Start Commercial Lines was built for agents who are new to commercial insurance or only write a few commercial policies a year. The program teaches you how to write commercial lines business with support from a dedicated team at Smart Choice. What’s more, the program gives you access to national, A-plus rated carriers. In Minnesota, Smart Choice agents can write with Chubb, CNA, Liberty Mutual, Nationwide, Travelers, and The Hartford, among others.
Quoting and binding coverage in Smart Start Commercial is easy. All you need to do is submit your prospect to the Smart Start system. The Smart Start team then reviews the prospect and submits the information to carriers, who provide you with a quote. The turnaround time is typically less than 24 hours.
If accepted, the Smart Start team works with the carrier to bind the coverage. You receive your commissions on the 15th and 30th of each month. You and the carrier work together to service the policy through renewal. While Smart Choice is the name on the policy, you own the account. Once you’ve written at least $20,000 in business through Smart Start, you can work with your State Director or Territory Manager to be considered for a direct appointment with Smart Start carriers.
Smart Start Commercial is a great way for independent agents to become familiar with writing commercial insurance. Summer is the perfect time to take the leap into commercial insurance. Let your competition relax up at the lake while you write more business.
Get in touch with your State Director or Territory Manager to learn more about Smart Start and other commercial insurance opportunities with Smart Choice.
Commercial Lines - Solving the Revenue Equation
We continue to see the ripple effects on our industry of economic instability wrought by the pandemic. Although we’ve been seeing indications of a hard market for some time, the state of the insurance industry shows no signs of reversing this trend and it continues to tighten from a risk perspective. Set yourself up to succeed amongst tightening restrictions and guidelines.