Being a truly successful agent often involves more than just selling policy after policy, especially when it comes to commercial property insurance. Insurance is a relationship business, and in order to build relationships with your commercial property clients, one step you should take is providing advice to help them with loss mitigation. Providing suggestions to your clients on ways they can reduce risk may not only save them a few dollars (a huge help especially for small, local businesses), but may also allow them to trust you as a reliable resource. Here are some great steps you can recommend for your commercial property insurance clients to reduce risk.
The first action all commercial clients should take is to analyze current risks posed to the business. This analysis should consider all factors that may be unique to their specific location and industry. From potential natural disasters to cyber risks, it’s important that your clients fully understand all the possible dangers that could affect their business’s stability and insurance premium costs.
As you speak with your commercial property insurance clients about analyzing their risks, suggest that they consider property losses due to physical damage caused by things like fire or criminal activity. To reduce these risks, clients can install smoke detectors, automatic sprinkler systems and security alarms.
Dependent upon the location of the business, natural disasters like earthquakes, floods, windstorms or lightning may also be something they keep in mind. Have they taken steps to prepare for these potential risks? Do they have a disaster plan should one ever occur? If not, these are all great tips for you to suggest for commercial clients.
Property Usage Loss
As an agent, you should also remind your clients that in the event of a fire or natural disaster, there is the possibility of losing the ability to use the property as well as any contents left inside. When members of Congress assessed damage caused by hurricanes Katrina and Rita in 2005, they discovered 43 percent of businesses that shut down post-disaster never opened again and out of the ones that did, nearly a third ended up closing within two years. These are staggering numbers, but what can your clients do to avoid becoming a statistic?
Advise your clients to have some form of Plan B. Some examples may include allowing employees to work from home, if at all possible, or backing up data and important files in a cloud-based system so that none of the information will be lost in a disaster.
One of the most important ways you can provide advice to your commercial property insurance clients is by asking if they are taking measures to ensure workplace safety. Many forms of injury on commercial properties could lead to the business being held liable for medical bills, lost wages or loss of future income. To lessen chances of slip-and-fall injuries in the workplace, suggest that they have a system for housekeeping, whether that is done by staff or by hired help with a cleaning company. It’s also a great idea for business owners to have a safety checklist they run through on a regular basis and safety tips posted in break rooms.
Learn More About ASI
Commercial and residential insurance varies widely from one company to another. Agents should check with each individual carrier to determine the type of coverage each company provides. ASI offers several types of commercial insurance in a number of different states. Find out more about our commercial department by going to www.AmericanStrategic.com/Products/Commercial.aspx.