How many times throughout the year are you asked to secure coverage for an insured for a specific reason? Well, once you obtain coverage for that insured, how many times do you actually revisit that account and review their coverage? What other missed opportunities are available for you to provide additional coverage that will not only affect your bottom line in a positive fashion, but also assist in protecting your agency against a potential errors and omissions claim?
These are the questions that an agency must ask itself, in order to secure its perpetuation, and increase its rate of retention. In most agencies out there, the emphasis has long been on obtaining new business, and not as focused on protecting what is already in house.
I am not at all saying that you should not continue to obtain new business, but it makes perfect sense for an agency to find new and innovative ways to retain business as well. This is something that many agencies don’t take advantage of, but it has just as much potential to put money in your pocket as new business does. It also makes sense if an agency uses what already has in house to cross sell to its existing customers, which will not only increase the agency’s rate of retention, but also drive additional revenue into the business. In many instances, cross selling also helps to lower the agency’s loss ratios over its carrier inventory. It has been proven that insured with multiple policies within the same agency, are less likely to file a nuisance claim than those who have only one policy with that particular agent.
So what are some of the best ways to cross sell and protect yourself and your agency against an E&O claim? Well, for starters, think of what opportunities are made available just by the time of year. As an example, summer time is now upon us, so what happens differently in the summer than in the other seasons? Let’s look at vacations for example: are your insured traveling to Mexico? Most private passenger policies in the United States do not extend coverage to that country. Therefore, by using EZLynx® Management System you can implement an email campaign, advising your customers to make certain that they contact your agency if they are traveling to Mexico, or any foreign country where they may be under the impression that they are covered by their existing auto policy. It may be as little as providing a Canadian insurance card for an insured visiting that area, or you may be looking to write a policy for someone driving across our southern border. Even if your auto policy does cover you in another country, is the coverage as robust as if you were in the states?
Speaking of traveling abroad, another question to pose your vacationing customers is whether or not their existing health insurance extends coverage while traveling to another country. Most people are so excited about their trip that they fail to look ahead and plan for an emergency while they are overseas somewhere by purchasing vacation insurance. Same goes for your insured that may be hosting graduation parties, or religious celebrations in a rented hall such as a firehouse or VFW hall. Does their homeowner’s policy include host liquor liability if they are having the party offsite? Are they better off purchasing an event liability policy for that celebration?
These sorts of opportunities are not only limited to the summer season, but to all seasons. Come the fall when kids are back to school, especially college, are they covered for their personal belongings while away at their dorm? To drill down even further, even if there is off premises theft coverage while away at school, is there coverage limited and filled with exclusions for certain items, such as electronic equipment, jewelry, or even cash?
Although we have just skimmed along the top of this subject, I am certain that you get the idea that we are trying to impress upon you. Not only is it incumbent upon you as an insurance agent to make certain that your insured have the coverage that their needs require, but cross selling is also a tremendous way to protect your agency against claims by your insured and also to add to your bottom line.