Make Your Commercial Lines Playbook

Direct writers are taking a notable share of once reliable insurance lines like auto—and that means now is the time for independent agents to expand into lines like small commercial business.

But recognizing the need to build commercial lines is one thing. Executing a strategy is another, and agents make a few common mistakes when doing so.

You may choose prospects because they are in front of you and easy to reach, rather than basing your selections on real opportunities. Say a new strip mall opens in your community—should you just approach all the businesses without first knowing if you have a market for them? No. You’ll make better use of your time only pursuing prospects that are achievable.

That leads to another common mistake: not taking the time to truly understand your markets. Talk with your carrier’s local field representatives before you approach new business. They not only help you understand what business they will and won’t write, but may also offer professional marketing and loss control resources to help you hone your expertise.

After identifying prospects, are you taking time to qualify the opportunities? That new strip mall may have a great business that seems like a good fit for your carriers, but if it’s located in a coastal area, it may be excluded. Know your carrier’s specific underwriting guidelines before chewing up your valuable time.

Finally, you may not be aware of your competition and what they mean for your prospects. This can work in your favor or against it. If your competition is another local agent with a best-in-class carrier, it will be tough to compete with them. But what if the competition is a large regional broker that doesn’t know the local community like you? Being part of your business community can give you an edge.

These four common mistakes add up to the biggest one: not having a plan and process for building a book of small commercial lines. You need a repeatable process that not only identifies and qualifies real opportunities but is also built around the appetite of your carriers.

Steve Tombarelli is vice president of business insurance advantage at SIAA, a national insurance agency alliance.