The construction industry is a great niche market for insurance agents. These specialty clients have a variety of needs – from surety bonds and workers’ compensation insurance to coverage on property, equipment, and commercial vehicles. However, the market is also saturated with agents attempting to make their pitch with tactics like low short-term pricing and slashed services. So how can you secure that you lock down the business while keeping standards high? Here are a few ideas:
Find the best insurance companies for construction – In order to get competitive quotes with all the extras intact, you’ll want to make sure the companies you represent are actually motivated to insure contractors. The degree of interest in the construction industry from carriers may differ significantly based on your area. Start the conversation with a potential construction client about who they use and why. This can often give you some insight as to which carriers may best fit their needs.
Educate and Advise – Taking the time to educate a potential client on the risks and benefits of coverage may seem obvious, but it’s a step that is often skipped by agents. Workers’ compensation insurance, for instance, may just seem like a legal necessity within some industries but in construction, this coverage is of dire importance. Explaining the risks of being underinsured with anecdotes and narratives can help educate and build trust between you and your potential client.
Stay within a reasonable budget – Because there are so many different types of risks associated with construction, the cost of coverage can add up fast. Your client may be looking for places where they could cut corners or take on the risk internally. While this may be frustrating at first, it’s important to understand the client’s budget and work within the confines of it. If you’ve done a good job advising and educating the client, you should be able to work together to navigate pricing.
Study their business for long-term success – The best way to keep a client happy for the long haul – in any industry – is to offer that client value that other agents don’t. For construction, that is understanding the intricacies of their business and how it relates to your insurance expertise. If you take the time to listen and learn about issues specific to contractors and construction practices, you’ll be more likely to come to the client with solutions – perhaps before a problem even exists. The moment you are able to do that is the moment you’ve earned a loyal client for life.
Sources:
http://www.insurancejournal.com/magazines/features/2008/01/13/155457.htm
http://www.iamagazine.com/markets/read/2014/06/16/how-to-sell-it-surety
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Charity Murphy is a freelance writer for Insured Solutions and Improve comedienne based in Louisville, Kentucky. She lives with her husband Ben and their two dogs, Sprocket and Ms. Brisby. |