It's time to capitalise on commercial cover

25 October 2010

It is a time of uncertainty and few businesses will be unaffected by the economic climate. The ones that survive will be those that fight for every income-generating opportunity.

Most advisers try to sell buildings and contents insurance and mortgage payment protection insurance alongside mortgages in standalone situations. But how many capitalise on commercial insurance opportunities?

Household insurance is complicated and transforming into fully-fledged insurance brokers is probably not the way ahead.

Many advisers have introducer arrangements with commercial brokers and following a simple referral process, hand over commercial leads to experts who deal directly with clients.

Products are wide in scope and include commercial insurance for small businesses such as shops and offices, commercial property owners, liability insurance and large risks such as factories.

While commission is lower, some premiums are substantially higher and the work involved is minimal. You will gain leads from day-to-day dealings with clients but why not ask whether they have business contacts to whom you can promote your service?

Use your involvement with local business groups to network and seek out opportunities for commercial business.

As with most general insurance commission, the earnings from this type of arrangement will be ongoing during the life of the policy delivering a useful income stream, adding long-term value to your business.

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