Getting a Commercial Insurance License in Florida
The Arena of Untapped Niches
Last Updated: 28 Jan, 2022
A commercial insurance license in Florida provides the authority to sell insurance products for varied business protection needs. On the other hand, personal insurance provides coverages for individuals to tackle personal losses caused by injury, accidents, or any damage caused to properties. A local insurance agent should consider diving in to commercial insurance line because it benefits the insurance agent as well as the local businesses that are thriving.
The dynamics are shifting completely from personal to commercial lines with an increase in businesses in the US. The Net Premium Written (NPW) for personal lines is 3.0 percent while that for commercial lines is 12.1 percent. The NPW growth rate in commercial lines was –9.3 percent.
If you want to open an insurance agency then preferring commercial lines over personal insurance lines would be highly profitable for insurance professionals. Also, you are exposed to various risks in this advice service industry. Hence, it makes you vulnerable against risks of lawsuits. A smart move would be to get an E and O insurance for insurance agents.
Commercial insurance is best fit for you
According to the U.S, Small Business Administration (SBA), 31.7 million small businesses employ about 60.6 million employees. This goes on to show that there are massive prospects in the commercial insurance space because without the right, and adequate insurance coverage, a disaster or a lawsuit can wipe each of them.
Reasons why to get Commercial insurance license in Florida
1) High commission payout– For instance, commercial insurance coral gables has a high policy limit than personal insurance policies. The high- values nature of commercial insurance makes directly affects the commissions the agents earn. The higher the policy limit, the higher the commissions, and vice-versa.
2) Expansion of commercial insurance– Business has ever-evolving nature. Insurance products also change with the changing dynamics of the business. Therefore, building probable niches under a specific commercial niche will make you realize that your personal line is very stagnant and is very less diversified. The increase in demand of cyber liability insurance in the diversified commercial market has also been a huge factor for the increase in this line of insurance.
3) Growing market in the commercial insurance– The number of businesses is growing rapidly and so has the demand for commercial lines. For example, commercial insurance coral gables, the government has mandated every business to purchase commercial insurance like worker’s compensation insurance, once employee/s are hired. Thus, the demand for overall commercial insurance has increased. You can also stay at the top of the game by getting commercial insurance designations.
4) Rising commercial insurance rate– Premium rates have also increased in the initial quarter of 2020. The greatest growth forecasted in Financial and Professional liability policies is by 23%, and Directors and Officers Insurance by 44%. The rise in renewal fees means a higher commission for the agents.
Some Tips for selling
- Start cold calling potential clients, prospect them, and network with them.
- Get to know about the certain business needs and analyze the costs.
- Use the help of digital materials such as an insurance aggregator. It is an interactive and comprehensive website.
- Convince clients or prospects to subscribe to your newsletters. Also, organize webinars related to risk management. It helps to keep your name on top of your clients’ mind.
- Follow up with the clients post-sale. Grab the chance to up-sell or cross-sell products in commercial insurance
Therefore, property and casualty insurance market is definitely a fascinating world of untapped niches such as E and O insurance or cyber liability or even commercial market. As an independent insurance agent, you should stay on top of these trends.