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An Agent’s Guide to Commercial Insurance

An Agent's Guide to Commercial Insurance text overlaying image of a insurance agent

An Agent's Guide to Commercial Insurance text overlaying image of a insurance agentBeing an insurance agent is an interesting profession because there are so many avenues of opportunity to explore. When most people think about insurance, their mind goes to either health, auto or even life insurance. A less thought about sector continuing to thrive is commercial coverage. Unlike many of the other insurance products though, commercial insurance is layered with many coverage types. Not only does this allow agents carve their own niche, but it also provides opportunities to help consumers in need. In the hopes to help agents who are interested in working with commercial insurance products, we’ve put together a guide of sorts discussing the numerous types of commercial policies including property and casualty, liability, workers compensation, disability and commercial auto. Additionally, you’ll learn about the overall benefits of working with commercial insurance, and the benefits of selling each specific product. 

Overall Benefits of Selling Commercial Insurance

Before we explore the different coverage types and their benefits, it’s important to get an overview of the profession. The following benefits that we discuss can be true no matter what specific coverage you end up working with. Not to mention the fact that most commercial agents deal with a variety of different coverage types. 

Potential for Long-Term Relationships

Since commercial insurance is purchased to protect companies, clients generally need support and coverage year after year. Unless a company goes out of business, they’ll likely want to renew their coverage on a yearly basis. Keep in mind that most business owners have very busy lives. This means if you provide them with exceptional customer service and coverage, they’ll probably want to keep using your agency. Fostering these types of long-term relationships will ensure business growth and a strong client base. 

High Earnings on Average 

Commercial insurance policies tend to come with higher premiums than individual insurance coverage, since an entire business is being protected. As we all know, in the game of insurance the higher the premium, the higher the commission for you. This potential to earn makes commercial insurance enticing to many insurance professionals. 

Diverse Client Base = Future Connections 

As a commercial insurance agent you will be working in a wide range of businesses and industries. From large corporations to small startup companies and everything in between, you will be able to establish connections with people from all walks of life. While this may not seem important to you initially, these relationships can benefit you later down the line. For example, say you sell both health and commercial insurance products. If you work with a CEO for multiple years in the commercial space and then two years down the road he needs a health policy, your already established connection will entice him to look to you for help. 

Specialization

Commercial agents have the ability to specialize in specific industries or coverage types. This comes in handy when it’s time to market yourself as you will be able to advertise your specific expertise. This helps you stand out from the competition. Additionally, you can always invest your time into a new niche in the future if you choose to. This makes it so your job never gets dull. 

Exploring Commercial Coverage Types

Keeping these benefits in mind, we’ll now jump into the different types of coverages when it comes to commercial insurance. Along the way we’ll highlight the upsides of working with each one. All in all, our explanations will help you to get an idea of what coverage type may suit you best.

Property & Casualty Insurance 

Property and Casualty insurance, also known as P&C, is one of the most common types of commercial coverage. In short, P&C provides businesses with protection for their property. This includes things like buildings, inventory, equipment, devices and more. Additionally, P&C coverage protects against risks that could occur such as theft, fires, vandalism and natural disasters. 

There are numerous reasons why  property and casualty insurance is an attractive coverage type to agents. In addition to high premiums resulting in high payouts, and the loyal client-base, this coverage type is highly customizable. The factor of customization lets you cross-sell other coverage types. It also provides the opportunity to display your customer service skills by catering to each client’s unique needs. 

Liability Insurance

Liability insurance is a must-have for most businesses. This coverage type protects companies against legal claims associated with things like property damage, injuries, or negligence. If these legal claims occur, the defense costs and settlement payouts will be covered with liability protection. This in turn helps businesses avoid costly financial burdens. Some benefits of selling liability coverage include:

  •  Large Demand: Almost all businesses require some type of liability coverage. This constant demand creates lucrative opportunities for insurance agents and brokers. 
  •  Ability to Specialize: Since there are multiple different types of liability insurance, agents are able to carve out their own niche. This makes you a more valuable asset in a competitive market as you’ll be an expert in that specific sector. The main types of liability coverages are general liability, employer liability and professional liability. 

Workers’ Compensation Insurance 

Workers’ compensation coverage is another type of commercial insurance that is an important part of most businesses. If you don’t already know, worker’s compensation serves companies by offering benefits to employees who suffer work-related injuries or illness. This generally includes medical benefits as well as wage replacement. The main benefits of working with workers’ compensation coverage is the high rate of client renewals, and the consistent demand. In fact, in most states its required to provide employees with workers’ compensation, making the coverage not only popular, but a necessity. 

Disability Insurance

Disability insurance, also referred to as Disability Income Insurance, is a safeguard for businesses, providing financial aid to owners and employees if they become disabled and are not able to work anymore. Since most people rely on their income in order to pay for living expenses and other necessities, this coverage is highly valued, as it offers financial protection. 

Like some of the other commercial coverages, one of the main benefits of selling disability insurance is the loyalty and value that clients will hold in you. Since suffering an injury that makes someone unable to work is already stressful and heartbreaking, most companies will be very appreciative of you if you provide them with a comprehensive policy. This makes the profession very fulfilling to most agents. Additionally, disability is often paired with other coverages like workers compensation insurance, which offers you a great cross selling opportunity. When pairing this fact with the already high premiums, disability coverage can provide agents with high commission checks. Not to mention that businesses need this coverage year round, so there is never a slow season for you. 

Commercial Auto Insurance 

When a company uses vehicles for their day-to-day operations, commercial auto insurance is usually a requirement. In general, this coverage type offers protection against damage, accident and other auto-related liability claims. It extends to any company-owned vehicle which could include cars, vans, trucks and more. Adding commercial auto insurance to your arsenal could be very lucrative for a number of reasons. First off, the number of small businesses operating commercial vehicles is continuing to rise year after year, so there should be no shortage of clients. Secondly, with commercial insurance rates also continuing to rise, the average commission payout to an agent is far higher than that of an individual auto policy. Additionally, like workers’ compensation coverage, almost every state (except New Hampshire and Virginia) is required to purchase commercial auto insurance, making the demand unlikely to dip anytime soon. 

In a Nutshell

In an industry as diverse as the world of insurance, it can sometimes be difficult, especially for up and coming agents, to decide on which product they want to specialize in. While every product has its ups and downs, commercial insurance stands as one of the most profitable and rewarding careers, with far less competition than areas like health and personal auto. Commercial insurance also provides agents with a variety of niches to explore such as P&C, liability, workers’ compensation, disability, and commercial auto insurance.

It’s ultimately up to you to decide on which area you want to invest your time into, but carving out a niche will help to separate you from the competition. In reality, no one area of the insurance sector will be a walk in the park, but selling commercial insurance can provide you with opportunities to not only earn money, but to also make connections with a variety of industry members that could benefit you greatly later down the road. 

 

Whether you’re already a commercial insurance agent or if you work with another product, Benepath is here to offer you a helping hand. For over 15 years we’ve provided insurance agents and brokers with insurance leads to help them meet new clients and close more sales. Unlike our competitors, all of the leads at Benepath are both exclusive, meaning they are sold to one agent only, and produced in real-time. This gives you the best opportunity to be successful. We offer both data leads and inbound phone calls in the following verticals: commercial, life, Medicare, individual health and group health insurance. If you’d like to learn more about what our leads can do for you, fill out a form or give us a call today at 888-684-3121.

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