How to Sell Commercial Insurance

Commercial insurance is a type of risk management for businesses rather than individuals. The type of commercial insurance and the cost will vary depending on the type of business, number of employees and level of risk exposure. A typing service might have lower coverage than a construction company because there is less chance for injury or damage to another. Because there are so many different types of businesses and complex regulations regarding commercial insurance, the choice to sell this type of product requires preparation.

Things You'll Need

• Resident license to sell property and casualty insurance
• Non-resident property and casualty insurance license for other states of your choice
• Insurance licensing study course
• Application and fee for state test

Instructions

1. Obtain a license to sell property and casualty insurance for your state. The license is all you really need in order to sell insurance. If you sell insurance in other states, a non-resident insurance license is required. The licensing process involves completing a course of study either in a classroom or at home. At the end of the study course, applicants must pass a pre-test before taking the licensing exam. The licensing exam is a supervised exam offered on a limited number of days in central locations.

2. Develop a plan to put your license to work. Decide if you prefer to open an independent agency of your own and represent one or more insurance companies or if you would rather work for someone else. For those just starting out, working for an agency associated with a large company would present opportunities of additional training along with supervised experience. An independent set up would be the same as starting a new business. A detailed business plan and start-up capital would be necessary to pursue an independent course.

3. Invest in additional training. Commercial insurance is competitive and the application process can be complex. Plan to attend and complete at least one training course every two years to become knowledgeable about the types of available coverage and the general liability forms you would have to complete.

4. Complete a sales training course for help with presentation techniques and strategies for making contacts. If you are working with an agency, they may have lists containing information about potential clients. In most cases, it will be necessary to build your own list of contacts by making calls and meeting people.

Tips & Warnings

• Both the licensing course and the exam must have the approval of the state insurance commissioner; therefore, that office will have a list of available dates and locations. Having prior experience in a particular industry would help you understand the particular circumstances and risk exposure for that business.

• Selling successfully requires persistence.