Commercial Lines Agency for Sale in Market Watch!
Finding a commercial lines agency for sale, begins with watching the market in which it will
perform in. This includes, a number of external and internal factors, that can impact the performance
of an insurance agency, regardless if, personal or commercial lines.
Let’s review the market, for familiarity purposes.
Insurance Market Familiarity
You should have a good familiarity with how value is assessed in the market you are selling in.
You will want to understand what industry competitors are out there and watch
and learn for ways to capitalize within this niche market.
This will help you gain returns when the market is not hot.
This is a proactive solution in an unpredictable and unforgiving market,
where only key indicators are used for guidance and not absolutes.
Having this type of mindset can be a recipe for danger.
This is when sellers get into trouble.
They think the arrow will continue to climb not
considering the political storm looming just behind.
It’s these types of shifts that can affect the undercurrent of the market:
- political upheavals,
- economic disruption,
- currency collapse,
- presidential campaigns
- and so forth. You get the jest!
Therefore, you need to take many factors into consideration when you’re riding in a strong market.
You want to make sure your shore break is not sooner than you projected.
This happens when you know how the market flow works, and as soon
as you see it shifting upward, you know the time is now to make your move.
Decision Time – Making the Ultimate Decision
This is the final piece of the puzzle, it’s time to share with
everyone involved about your decision to sell.
The decision-making process can be sometimes the most stressful.
You are planning for emotional reactions to your upcoming news.
You have no clue how some people will take the news, and hoping to avoid others entirely.
Whatever the case, it can be an emotionally charged experience for
both parties involved in this communication delivery. Having said that,
you can start the conversation right away.
Why not start this conversation right inside your home with your family?
Not only is it a comfortable surrounding, it helps break the talk with
future company staff members. Almost like a practice run.
You may sit at the dinner table and let the kids and spouse know the news first.
Depending on the reason and motive to sell, they will share in the
excitement if that was the emotion behind the sale in the first place.
Behind Corporate Doors
Now, once the family knows about the big decision regarding the business sell,
it’s time to let everyone in the company know as well.
You should have had an outline beforehand. This was just for your own reference.
If you touched on the major points, addressed everyone affected with your decision,
and let them know the appreciation you had for their service, you should be good.
The actual communication platform will start normally at the place of business.
This starts with meetings that involve different level of management and the outside workforce.
You may want to address each person individually depending on the size of the company’s workforce.
This plan of action should be well thought of, way in advance.
You will want to consider each party’s reaction to your news.
Be prepared for emotional outburst and displays of affection.
This is a normal behavior, we are humans, right?
Taking into consideration, people’s emotions,
who were a part of your business ventures should be addressed.
Like with most successful things in life,
a team is always responsible for some of the credit.
Yes, you will have a coach or a corporate leader, but the true spirit of the
company should reign with the people involved in the daily operations.
They are an asset to any organization,
and are factored into some deal making transactions.
Pretty impressive, to value in the workforce when negotiating a deal.
It shows how important the human element is within a business structure.
This is not the perspective we are trying to convey, that people are like property,
but we are showing how people make businesses profitable,
and not just by their labor, also through their spirit.
It’s the human spirit that helps shape successful organizations.
And, if you’re a seller with a valuable loyal workforce, you are very fortunate.
That is worth its weight in gold, stock in your case.
But all kidding aside, they are responsible for the bottom line for many companies,
so company appreciation events are common place to give back.
Yes, some would argue it’s a tax write off and projects company compassion all in the same breath.
But, we rather not be such cynics, since there’s enough of those out there already.
Rather, a more positive approach to the process of selling your insurance agency or
insurance book of business should be made. This will help pave the road for future success,
and open opportunities up to you as an insurance agency seller.
Commercial Lines – Difference in Market Type?
Curious to know the difference in meaning of commercial auto and commercial truck insurance?
The simple answer is, other than a different vehicle type,
this coverage still falls under 1 umbrella policy, commercial insurance.
This is because a commercial insurance policy is coverage for your business,
and both commercial auto and commercial truck have the same principal.
Yes, the vehicle types might be different,
because just under trucks alone for example, you can have different vehicle layers.
For example, like, box trucks, utility trucks, food trucks and so forth.
These work trucks are used just for that, work use!
Comparison in Commercial Insurance and Personal Insurance?
So, the difference lies between personal insurance and commercial insurance,
and not the individualized categories under a commercial policy.
The difference is that commercial insurance is used for business purposes,
and for the most part personal insurance, will not cover any business-related loss.
On most personal auto insurance policies, it will spell it out to the reader,
that no coverage exists if used for business purposes, meaning the truck.
Of course, you might have to use a vehicle to get to point A to point B
for work purposes, but this is just considered normal transportation.
Divide and Cover – Commercial Insurance Protection
The divide occurs when the actual vehicle itself, is used during business,
meaning carpool, or using the vehicle to pick up loads of goods, or transport people.
This is when the personal auto policy is no longer valid, and when a commercial policy must begin.
Commercial vehicle insurance, can encompass coverage for cars, trucks, vans and so forth as you can see.
It can also include fleet coverage for larger trucks and large volumes of trucks.
So, if a trucking operation has over 6 trucks, and needs coverage,
they could find this under a commercial trucking policy.
You can also add additional coverage to these commercial policies.
For example, if you have a trucking company and have employees,
you can also consider workers compensation.
The actual business operation can also be protected in a general liability policy as well.
How to Save on Insurance Premiums?
As insureds, business owners, vehicle divers, we are all looking for
the same thing when it comes to insurance, great coverage at a low rate.
Therefore, most of us take to online in the first place,
to see if we can save some money. Who doesn’t enjoy that.
So, now that you are passed the excitement of saving money,
let’s change the dial and look at other ways to protect and save.
These methods usually arise out implementing,
or at least acknowledging some common risk control methods.
These methods are important. They can help reduce any potential
future loss as well as minimize the impact if one should occur.
It’s double edge sword of goodness and protection.
Common Risk Control Elements
Now, without further ado, let’s observe some common risk control recommendations
that you might find on your trucking policy or commercial auto insurance policy.
As you have learned in current reading, the two words or phrases,
commercial auto and commercial truck can be used interchangeable.
Yes, the vehicle types are different, with varying forms, but they both fall
under the same umbrella of commercial polices, and both cover business related coverage.
So, you might see these words exchanged throughout this writing piece.
However, just remember to separate or divide policies by what they cover during use, business or personal.
This will help to separate the two, and frame a strong foundation for the two.
Commercial Vehicle Insurance- Risk Control Relations
To understand the different types of risk controls on a commercial policy,
you must look at the definition of risk management.
So, what exactly is Risk Management mean anyways? Risk management means to handle the risk in a certain method.
These methods can be through:
- as well as the transfer of the risk.
It means like it sounds. It the control or management of risks.
The goal is to reduce risk exposure or deduce the risk itself, to manageable levels.
There are methods that help with this management. These risk control methods
or techniques are in place to help maintain coverage without creating premium hikes in the future.
This is achieved by managing the overall loss protection program.
Yes, a program that is in place to do just that, control the risks.
This is almost as important to the trucking operation as other components,
like the equipment or drivers. It’s safety of course.
Safety measures are very important to the overall health of an operation
and why we are going to examine it next.
When discussing safety, you must look at the conditions that are involved in the process.
We are going to list a few of these safety conditions below.
Remember, they are not a complete list. They are a guide to show you
the different methods, or ways of imposing safety measures.
These measures are standard in the industry, and ready for implementation.
Sales Perspective – Campaign of Resolution
Also, you can incorporate the following recommendations into your sales campaign or presentation.
Think about it, if you can show or help someone in this industry,
reduce their risk and keep cost and exposure down, why wouldn’t you?
This is especially true if you are a sales representative, and you are
talking with a client who owns a trucking business for example.
This is the time to open your operation to the different safety measures
that can be implemented right now, without a policy even being purchased.
This is because, many drivers or business owners, might already have an open and active policy.
They are just waiting for their renewal term before they shop and compare.
This happens very frequently in the buy and sell arena for both commercial
auto insurance and commercial general liability coverage.
Buy/Sell – Helpful Advice, More Savings
So, who doesn’t want helpful advice like this if you are on the insured’s end of the table.
Most do, and would be thankful if a more in-depth discussion would occur.
This allows for future dialogue and future business opportunities.
This can stimulate discussions on coverage and other recommendation opportunities.
Many buyers of insurance, may not necessarily be ready at the time of discussion,
but when ready, they will remember this helpful advice and contact you, the sales professional.
This is the process to how many business insurance transactions take place.
This is because, business or commercial insurance is a longer process.
It is very different in many respects to that of personal insurance.
The entire act, from gathering the information for rating, to the closing portion of the sell.
Also, the aftermath, or the follow up is a lot different on a business insurance deal.
This is because many more components are working in balance on a commercial policy.
These intricate components need to be captured and discussed with the owner of the policy.
These questions from agent to insured, are more detailed and more in depth,
channeling longer conversations and relationship.
Relationship building in these type cases,
are stronger and riper for future sales opportunities.