Discounted coverage. The straight-forward, classic approach of simply asking for the sale. This has made OAA the number one ranked Strategic Master Agency of SIAA for the last 5 years, and one of Oklahoma's 25 Best Companies to Work for. Often, prospects will then just nod along, but the objections will remain after you've left. Selling Commercial Insurance in a Hard Market. Even if you only have part-time workers, workers' compensation is required for businesses in most states. Well, since we're discussing how to sell independent insurance agencies today, that's kind of what I'm gonna focus on.
Also, clients often buy business insurance out of obligation. And one, the main one that we use sits right on top of the SBA, so everything that goes through SBA, because through that platform, and that way, we're able to give you the highest and best selling price, you know what we believe that it can be sold for. Even if it doesn't work out right away in terms of selling more to current customers, you might be able to form deeper relationships with clients during these types of reviews. Considering Selling an Insurance Agency? Stop! And Read This First. Steve: So Laura, I just want to preface the show because about 15 years ago, I was selling my business. Keep in mind — most businesses sell for 4x - 5x the adjusted EBITDA.
However, to properly educate your clients on the best insurance products, you must take the time to learn the nuances of their industries. It brings new opportunities and challenges for business insurance. Or perhaps that employee or family member you've been training is ready to take over the business and raise it to new heights. When we talk about total earnings of an insurance agency, there are a couple of key numbers to look for. Although everybody is facing an increase, that does not mean that it is obvious to your clients that their rates will increase as well. Underwriting standards. How to sell commercial insurance company. Everyone told me that my business was for sale. Or look at your website's internal analytics, ask customers what they're trying to learn about, etc. If an employee is injured while at work, it will pay a portion of their lost wages and medical bills.
You want to get this right. One, maybe two questions answered per call is a huge victory. Joining business groups or attending events that help you network with the types of small commercial businesses you're trying to reach. If it is an error that you are responsible for, your E&O coverage will take care of the client. What are the two most common license types? Almost 80% of sales take five or more contacts. You can explain how your insurance business specifically helps other types of businesses. How to sell insurance to business owners. I've had three businesses of my own – had no idea that business brokers existed. And the second important factor to consider would be the actual value of the book of business. While some businesses thrive during hard markets, others stumble if they haven't adequately prepared. Gum on the street is not free candy, and prospects that you stumble into rarely are quality leads. Overcome Objections. The excellent reputation generates referrals and keeps them busy. Although it feels like free business, commercial agents know that's not the case.
Some make 100 calls a day to line up a meeting; others have three appointments after 20 calls and a cup of coffee. One of the best insurance selling strategies can be to go deeper with your current customers. "The price is too high right now. If you want to sell commercial insurance, you need to specialize. - JoinFirefly. There are many kinds of commercial insurance and personal insurance policies. You read tech blogs, attend conferences, and have long conversations with clients about their risk management. A plan involves strategy, actively seeking or creating opportunity. End the conversation with something like, "Based on what we have discussed, does what I offer meet your needs? " Many options are available, and most will require some trial and error until you find what works best for you. That can lead to more sales later, while also potentially encouraging current clients to recommend you to new prospects.