Markets for Professional Liability

[Royslist]

Hi everyone,

I am 5 years in the financial planning business and considering strongly joining an agency in IL which offers P&C, Commercial and Personal. I am fortunate in that they are going to put me on a "training salary" the first 2 years while I build up a base of residual income. Also, they offer a ton of carrier relationships and have niche providers in professional liability markets.

I'd like to make a "sale/day" my first two years, so 500 policies let's call it if I work 250 days/yr. Obviously, home/auto provides opportunities for this.

However, I would like to establish connections with business professionals and commit daily 9-5 marketing to business professionals (homes/personal markets in evening). My thinking is there are business professions where people work at a desk from 9-5, and I can reach them and discuss their professional liability coverage.

- Financial Planners need E&O, but most are going to get it through their broker-dealer's, no doubt. There may be a market here with RIA's independent of B/D's and I plan on looking into that. Does anyone have any experience with PL in this market?

- Real Estate Agents E&O .. they're easy to find. Where do they normally obtain E&O? Through Coldwell Banker or whoever their firm is if their with one of the National Agencies? Or is there a potential market here?

- MedMal .. the wife's a doc so this is obviously a market I could break into eventually, but I recognize it will not be a high volume market, so it's not ideal getting started.

- ACCOUNTANTS AND ATTORNEYS .. I am particularly interested if anyone works these markets directly for PL coverage? I am concerned many JD/CPA's obtain their coverage through their BAR/CPA associations? Is this your all's experience or do many of them obtain their coverage independently so this could then be a viable market?

Can anyone comment on their experiences marketing to the PL market? Which professions were best? Which were most difficult?

THANK YOU KINDLY, THIS IS SO HELPFUL IN DEVELOPING MY MARKETING PLAN!

 

[Guest]

Not a clue what your question is. If your asking about markets, why ask us and not the broker you join? It will vary state by state and each carrier will have their own expertise and every carrier wont write all of the above.

Where do you get your "goal" numbers from?

Second, again, no offense, you don't know what you are doing, Commercial is VERY difficult and complicated. For instance, you are missing a few policies from the same person you are trying to talk to.....meaning, You sound like you ONLY want the Pro Liability, well, I will guarantee you that, If I write the GL or BOP or whatever, I am also going to write the Pro Liability......

Why would I let other policies get away and why would a business owner want multiple agents?

What makes you different than the next guy walking in behind you or down the street. No offense, you make it sound like you can walk into a business and write a policy right then and there.

And then, what are you going to do when you do get a policy and then they want you to look at the personal stuff?

When I hire a producer, I do NOT let them do commercial policies until they "know" the personal lines side and all the differences. I Do the commercial side for them.

You will need to learn the differences in each policy, in each company.

Not to be a downer, but you got A LOT to learn. You are trying to start off on level 18, when you need to know the basics on level 1.

 

[benk622]

I don't think the sale a day mentality is going to get you far, especially in the professional lines market.

It will also take you longer than you expect to break into the these markets. I would recommend if your just starting out to not make this your primary market for a number of reasons.

These are very tough classes of businesses to cold call, especially lawyers. Very tough gate-keepers and time is money in this profession, most aren't sitting around hoping for someone to give them call to sell them something. Among my lawyer clients getting a hold of them can be tough a lot of the time and thats with all ready having a good relationship. There business is based on referrals and I've found thats the way they get hooked up with service providers.

They will sense your inexperience. Depending on the areas of practice they may know more about your product than you do! Its also usually a tight nit community, if word gets out you don't know your stuff it can be very difficult from there on out.

It can be rewarding once you get into this type of business but you'll starve starting out before you grow a decent book of business. Find lawyers when you can through networking and other clients, do a good job for them and let the word get out.

Depends on your area but where I'm at there are very few private practice doctors anymore, its really a dying industry everyone is being bought out by larger hospitals. If you can grab a few I'm sure the premium is well worth it.

There are very few independent real estate professionals in my area also, most are with Re/max or Howard Hanna. The few I know are one man shops with premiums under $1k, even with a 20 year retro.

 

[Royslist]

RBA, the fellow hiring me has the expectation that new producers should complete a sale/day, so 250 policies per year, whether its home/auto/life/PL/etc. ...

It seems like a tall task. However, this day and age, I am optimistic that price can sell.

I am looking for a market that I can reach during the 9-5. Attorney/Accountants need professional liability coverage, so maybe there is an opportunity here? Especially if I can help attorney's or other professionals match current coverage at a lower price ...

So I am curious to know if anyone on here markets to professionals their liability coverage (primarily through cold calling) and what their success rates are with different professionals? I know MedMal is tough ... what might produce a higher success rate?

I am also trying to determine if anyone is aware if most attorneys get their PL through their bar association, or if most accounts get it through a CPA association? If a majority of these professionals are obtaining their malpractice coverage through independent carriers, then their could be a market here for someone like me new to P&C/Commercial Insurance.

That's what I'm trying to determine. What is the market like for professional liability? I want to find the 9-5 source of free leads such as attorney's I can call to and pitch. If I can save them money and match their coverage, this could help me meet my sale/day "quota."

THANKS!

 

[Guest]

Just wait til a lawyer reads his policy and asks you to make changes! YUP! That happens!

 

[Royslist]

Hi BenK, thank you for your response. Sub 1k liability coverage for RE agents is not too exciting, I would have to agree. At least with RE agents, they may recommend their clients insure their homes through you, but even then, the RE market is so dang slow that who knows what comes in from that? Similarly, E&O for life/health agents is sub 1k per year normally, too.

In pursuing high volume sales, I know that I don't want to work evenings too often. So professional liability seems like a great route in order to pursue new sales during the 9-5.
Now obviously if there was a golden goose of a market, everyone would be selling it, so its not out there - but I am still trying to figure out the *best* high-volume sales market to pursue getting started ...

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RBA, thanks for your reply!

No, I don't only want Pro Liability, but it seems like a great in, as I want to work professionals market as much as possible in order to avoid multiple evenings.

In addition to P&L, I know I can insure their building, staff for WC, etc. I can also open the door to personal financial planning, where I'm much more experienced.

Thankfully, I can bring experienced agents along from my firm on appointments - I just need to open doors while I learn the business.

And finally, I'm not sure what makes me different than the guy down the street, which is why I'm scared sh!tless of this quota and jumping 2 feet into this business. I am hoping the producers on this forum can provide me with direction of how to get started marketing to professionals with a high-volume of sales. PL seems like a natural "in" product, especially if you can match what they own and lower their premium.

 

[Guest]

This is the wrong business for you if you only want to work 9-5.

Most of my commercial clients and certainly all my HIGH DOLLAR commercial and personal lines clients have my cell number.
That attitude right there can/will prevent you from being successful in this business. You get some big property owner who's building got robbed or caught fire, you better get your little happy ass down to the scene to help him, explain things, comfort them.

I have to say, You are in WAYYYYYYYYYYY over your head! There is sooooooooooooo much you need/HAVE to know about commercial, you are simply clueless. I am glad I am not your client.

 

[Royslist]

RBA, I am discussing marketing 9-5 to professionals, because I plan to reserve evenings for personal finance marketing and appointments, when I'm not playing sports/otherwise busy.

Yes, I am aware I will need to be there for my client no matter the hour of day as issues come up, and, yes, my cell phone is always available to my financial planning clients.
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Has anyone experimented with mortgage brokers for marketing e&o coverage?