Insurance Is Not the Only Answer
My insurance agent friend John and I had another conversation about how agents can, and need to differentiate themselves from other agents. Last month we talked about how John uncovered an uninsured exposure and how John’s advice helped his client recover about $450,000.
John holds to the belief that the agents job should be to help the client understand and uncover risks, then design a plan to treat or manage these risks. The agent should not be quick to suggest insurance in every situation. In fact, in some cases, insurance may not even be the best option. Agents need to get out of the selling business and into the education business.
John’s most recent example involved a manufacturing business that had a small fleet of three delivery trucks. John asked the client about the costs associated with the three-vehicle fleet, which included the vehicles, maintenance, three drivers, related benefits, and finally the cost of five recent accidents over the past three years. The client identified a number of costs they were having trouble managing, these included; workers’ compensation claims, high driver turnover and a number of auto accidents.
John asked the client to consider outsourcing the delivery (mostly small packages) around the community and region. John led the client in a review, or risk analysis, of having their own drivers compared to using contracted providers. The results showed that the business would save about $12,000 annually by contracting delivery services. John worked with the client to make sure all contracts and agreement had the proper insurance language, including additional insured wording.
In this case, John actually lost revenue as the business sold their trucks and let the drivers go. However, John showed the client how a trusted business partner could add true value.
Reichley insurance believes insurance is more than a transaction. Insurance involves a trusted relationship built on a promise to put people before policies. Our promise is to listen to you, identify your risks, and provide solutions. Every Reichley employee has the heart of a teacher. Connect with us to experience The Reichley difference.
“Try not to become a man of success. Rather become a man of value.” – Albert Einstein
