There are over 1.5 million entities in the construction industry, and they come in all shapes and sizes. It’s a profitable client base, typically requiring the full spectrum of small business insurance, including general liability, commercial auto, workers’ compensation, and cyber. In 2022, over 32,000 of those contractors looked to the Bold Penguin Exchange for an agent to insure their small business.  The demand on the Exchange is consistent but sees its height in April. Which means now is the time to prepare for this demand.

For agents focused on small commercial, it’s smart to find preferred contractor customers that retain and demonstrate solid business practices, maintaining a great loss ratio with your markets and earning profit bonuses.  

But finding these prospects is not easy. When looking for contractors with fewer claims, prioritize:

●     Years in business. It is a significant factor in retention, considering many are inexperienced in operating their own business.

●     The type of work the contractor does. Additionally, look for clients with strong business practices that are disciplined in the types of jobs they are willing to accept.

●     Strong employee training. A trained workforce simply performs better, with fewer mistakes.

Best Practices To Win Experienced Contractors

Start By Talking

Clients need a trusted advisor to educate them on their risks and protect their assets. Begin by focusing on closing coverage gaps that may leave contractors unprotected. This involves having a conversation about insurance that is needed beyond the basics and being there for small business owners as their business grows. For instance, some contractors can earn extra seasonal income by offering snow removal services. But they may not be aware of the need for snowplow coverage – a big gap. Snowplow operations are not automatically covered by a general liability policy unless it is specifically endorsed.  

The quote experience should be easy and seamless, giving agents the time to be consultative.

Identify Additional Needs

Be prepared for additional specific needs, like installation floater and coverage for property placed in the contractor’s care, custody, and control.  Many online quoting applications do not automatically offer these coverages.

Leverage The Exchange

Maybe you can’t help them, but earn their trust by finding someone who can. The Exchange finds the agents who are skilled at helping these contractors get the coverage they need. This entails focusing on the experienced contractors that result in minimal to no underwriting delays, low-cost acquisition, and openness to understand and close any gaps in their insurance. Additionally, it allows agents to pre-identify contractors that fit certain attributes. The Exchange matches the right prospects to the right agents, thus helping agents write more business profitably.

Get Ready

The time is now to be prepared for this busy season.

●     Ensure that you have access to carriers that offer coverage beyond the basics and have a low-touch quoting process.  

●     Identify the types of contractors that you believe will have not only high conversion for strong retention, but also protection from more claims.  

Bold Penguin is here to help. We are relentlessly dedicated to agents and helping you win more small business. To learn more about how you can do this with the Bold Penguin Exchange, click here.

Contributed by

‍Karnina Szymanski

Chief Customer Officer at Bold Penguin.