“Always be prospecting” is a famous motto that top sales representatives apply to their business strategies, especially in insurance. Market conditions change, so accounts that were once a safe bet to base your entire book on may no longer be sustainable (looking at you, homeowners). Insurance agents must invest regular time in their operations to focus on prospecting new accounts. As we plan for the future, here are the top classes of business you should target in 2024.
Rental Dwellings
In 2023, annual rentals remain a staple for insurance agents. As housing market prices increase, more Americans choose to rent rather than buy homes. Additionally, short-term rentals are gaining popularity due to the revival of travel and the movement of snowbirds to warmer cities. Platforms like Airbnb and Vrbo are further fueling this trend. Typically, rental owners also have other policies that you can write, such as homeowners or condo policies, ATVs/jet skis/toys, and umbrella coverage. Read more about the rise of rentals in our short-term rental blog.
How to Write: It's essential to obtain general liability and property coverages for any rental. Despite the challenging property market for personal and commercial line agents, there are options available in E&S. Pathpoint can consider both annual and short-term rentals under a Lessor’s Risk package. You can enhance your competitive advantage with Pathpoint's ability to provide quotes across all 50 states, which includes properties on the Texas, Louisiana, and Florida coasts.
Vacant Land
Consider investing in future opportunities through vacant land accounts. It's a profitable niche for insurance agents, as property owners often hold onto land, anticipating its value to increase. Offering coverage for these risks allows agents to deliver a valuable service to landowners. Additionally, it helps you diversify your portfolio and boost your revenue.
How to Write: Although often overlooked and perceived as low risk, vacant land can carry potential liabilities, such as injuries on the property, which could result in significant claims. Seek out policies with flexible term lengths (from three to twelve months) to ensure you can easily transition to the appropriate coverage for the next cycle. Pathpoint offers an affordable liability solution with premiums starting at just $500.
Vacant Buildings
As prospecting vacant land can be beneficial, vacant buildings also make good starting points for an agent's book. Agents can have a comprehensive market with their insureds, maintaining the account when they list, renovate, or purchase a new property. Additionally, commercial properties offer further opportunities. The pandemic has adversely affected many commercial businesses, leading to closures. High commercial rents and transitioning away from traditional office environments have resulted in vacant commercial spaces.
How to Write: Like vacant land, vacant buildings require comprehensive coverage and flexibility. However, additional risks such as vandalism, squatters, and theft must be considered. Consider the physical characteristics of the building, including the condition of the roof, plumbing, and electrical systems. Ensure vacant properties are secured with locks, alarms, and fencing, particularly if liability risks like swimming pools or lakes are on the premises. Obtain packages for your vacants with Pathpoint easily.
Lessor’s Risk for cannabis tenants
Are you considering entering the thriving cannabis market without feeling overwhelmed? We suggest starting with Lessor's Risk (LRO) accounts. Writing business owner packages can be challenging since standard insurers are often reluctant to provide full coverage. Opting for LROs presents a lower risk with high reward, as you represent the property owner, not the operations themselves. To learn more, check out our blog, Exploring Lessor's Risk for Cannabis Operations.
How to Write: Like rentals, you can quote general liability, property, or complete packages for these accounts with ease at Pathpoint under our LRO vertical. A key detail to remember is that cannabis operations are not legal in all 50 states, so check local and state laws. Click here to learn more.
Manufacturers
Home-based manufacturers are a growing segment among small businesses and a staple for insurance agents. As an agent, you might already have several of these businesses primed to be added to your portfolio. Start by asking your homeowners clients about their home-based businesses or paid hobbies. This can help you understand and cater to their needs. Your clients will appreciate your diligence, too. Most home-based entrepreneurs are well-networked, so you'll soon develop a steady stream of referrals. Use these referrals to secure home-based businesses, homeowners, auto, and other types of insurance. Home-based businesses make up half of all small businesses, representing a massive opportunity for growth!
How to Write: Within a general liability policy, ensuring your clients have product-completed operations coverage is essential. This type of liability covers the business if a product defect causes harm to another. Completed operations offer additional protection against bodily injury and property damage, mainly if clients visits the premises. Pathpoint provides a comprehensive general liability solution for cosmetic manufacturers and continues to add more classes regularly. Learn more about cosmetics manufacturing here and visit our website weekly for updates on additional classes.
General Contractors
Those in the insurance industry often work with general contractors (GCs) as they are prevalent in the economy. This profession continues to flourish as their services are required, and contracts and licensing demand proof of insurance. Another advantage for agents working with these contractors is the potential for referrals. General contractors frequently hire subcontractors, such as plumbers and roofers, for specialized tasks beyond their expertise.
How to Write: This class of business needs a complete package and then some, as there are exposures opened up when working on clients’ properties and the dangerous operations involved. Some additional endorsements you should seek are additional insured coverage, waiver of subrogation, primary and non-contributory wording, and completed operations. Good news - Pathpoint can quickly provide all these coverages with the general liability.
Remodelers
Much like general contractors, remodelers are another thriving category that requires insurance. This category encompasses various technical professions such as installation, carpentry, electrical work, drywall, and more. There will always be demand as property owners consistently seek updates to improve their commercial and residential spaces.
How to Write: Remodelers require the same coverage as their general contractor (GC) counterparts. Due to the complexity of remodeling operations, obtaining comprehensive general liability quotes may require some effort. Luckily, Pathpoint can quote over 100 contractor classes in minutes.
Power washers/Pressure washers/Gutter cleaners
This contracting class is in high demand, as property owners often prefer to hire professionals due to the technical nature and potential risks involved when needing more experience.
How to Write: Power/pressure washers and gutter cleaners need the same coverages as GCs and remodelers and can be quickly quoted with Pathpoint online.
Excess general liability
Claim costs are rising in the age of social inflation and nuclear verdicts. For classes more prone to lawsuits, like contractors, it's advisable to recommend higher liability limits to cover damages and defense costs. Additionally, many contractors are contractually obligated to obtain these higher limits due to increased litigation. Having existing excess limits will enable your clients to price their bids accurately, presenting a more professional image than those who have to arrange these limits in the backend hastily.
How to Write: Adding excess for your contractors is fast and easy with Pathpoint. We offer excess general liability for over 340 classes of contractors, including general contractors, remodelers, and power washers.
Food trucks and concessionaires
Increasing commercial rents have resulted in a surge of mobile food trucks and concession stands. These smaller businesses are becoming more common in cities, parks, and commercial lots, often found near entertainment venues and liquor stores.
How to Write: Each food truck operation requires different insurance coverages depending on its risks. For instance, mobile units such as ice cream trucks will need commercial auto insurance. Both mobile and stationary trucks will require general liability and inland marine coverage. Insurance agents should ensure coverage includes trailers, business personal property, and equipment breakdown. Additional theft coverage, spoilage (if food), and business income should also be considered. Want to learn more? Register for our upcoming food truck webinar before our new vertical release this February!