NLIC.org

Douglas Said:

How do I find new commercial insurance customers in my insurance agency?

We Answered:

You pick a class where you think you have a competitive product. Go to the yellow pages, look up the addresses, and go visit each one. Sometimes 4-5 times. Ask for referrals from existing clients. Ask your marketing reps for prospects - most carriers WILL give you a list of prospects - mostly for classes they are targeting, from yellow pages or D&B reports.

D&B is another great way to find 'em, you can get financially solvent companies, by SIC code.

Gloria Said:

How do I get started in the commercial insurance industry? (sales)?

We Answered:

The first thing you need to do is get some experience and about the only way to do that is in a trainee job. (I personally started out as a claims adjuster). You have to learn the insurance business. Most states require insurance agents to be licensed. It's a bit difficult to pass the license exam if you don't know anything about insurance.

There are also property casualty courses that you can take at most colleges. A Tech College or Junior college might be your best bet to start looking at that. It would give you the basics of what insurance is. There are so many different types of policies, especially in the commercial end of the business, you definitely need some background to get into this. Otherwise, you'll wind up getting sued for errors and omissions for not providing your client with the proper coverage.

Start with any of the major insurance companies or a broker. Most of them are always looking for trainees that want to get a start in the business.

Jordan Said:

If I get a company car, do I HAVE to get commercial insurance?

We Answered:

Depending on what kind of corporation your set up as may dictate how you can use your deductions, but with that aside, no you don't have to get commercial insurance. From what I've been told from someone in your shoes is that if you don't need a special license class to drive the vehicle, you don't need it. If you get commercial insurance though (personal insurance too), you should be able to deduct the cost through and use business pre-tax dollars to pay for it so your actual cost is much lower than it first appears. I hope your are having the business buy the car too instead of your after tax income.
Ask your CPA for exact deductions rules for your corporation.

Anita Said:

Do Commercial Insurance Agents make good money?

We Answered:

Agents are on a straight commission basis - if you don't sell, you don't earn any money.

As with any sales job, when you narrow your market so severely to write only ONE LINE of business, you're not going to do so hot.

Workers comp is the hardest line of business to write; stand alone workers comp is almost impossible to write except through Texas Mutual (who's going to charge more); and workers comp is the line of business with the smallest commission rate.

If you're thinking about going into insurance, to sell only workers comp insurance in Texas . . . I think you need to rethink your business plan.