Offer Coverage Options
Offer Customers Coverage Options: A Growth and "CYA" Strategy
Let Customers Make the Buying Decision and Document Accordingly
Agents have all kinds of customers, from the ones that think they know more than the agent about their insurance needs to the ones that could not care less and insurance is a necessary evil to comply with contractual agreements. There are probably some commonalties among agency customers – most are focused primarily on price! This is completely understandable, but just because your customer is focused solely on price doesn’t mean the agency should.
The number one way to grow agency revenue is to sell more coverage. Whether this is done through writing new accounts or account rounding, it is not an easy thing to do especially when dealing with price shoppers. However, selling more coverage is not just a way to increase revenue, it also allows the agency to CYA (“Cover Your Assets”) from potential E&O claims down the road. It’s a pretty simply formula:
Offering Coverage = Increased revenue + Fewer E&O Claims
Oftentimes producers are faced with customers that want the same coverage they’ve had for years or the minimum to meet the insurance provisions of contracts. There is a preconceived notion that customers will not purchase coverage options and they are uncomfortable asking the customer to take the time to do a more thorough evaluation of their insurable exposures. The underlying unease of being a pushy salesman may prevent producers from offering additional coverages. This is a trap that producers must not fall into. Agents are best served by providing customers with their coverage options and letting the customer decide what to purchase. Coverages rejected by the customer should be documented in the customer file for when the customer’s memory fails after an uncovered claim. This documentation will allow your E&O carrier to provide the agency with a solid defense should an E&O claim occur. Believe it or not the agency will also have a stronger bond with the customer because of the professionalism of addressing insurance needs that have never been discussed in the past. Whether they buy the coverage is not necessarily the point, because at the very least you are addressing your own “CYA” factor.