Gathering all the correct information about a client or failing to do so can, respectively, ensure the individual has enough coverage in the event of a loss or leave the client vulnerable. Because a seemingly small detail can make a significant difference in the price of a premium and the amount of coverage provided, it is the responsibility of an insurance agent to be thorough and ask the right questions when writing a commercial policy.
Commercial insurance agents should gather information regarding the client’s full name and the names of any other business owners, along with their dates of birth and Social Security numbers. Also needed is the name of the business, type of business entity, the business’s physical and mailing addresses and contact numbers for the clients. An agent should also notate the type of business the client has, the square footage of the building and information regarding business loans that require proof of insurance.
Commercial Insurance Needs
A basic commercial insurance policy provides liability and property coverage. To make sure a client has sufficient liability coverage, an insurance agent should have the client’s complete quarterly reports, sales figures and payroll reports. It is important for a policy to represent a business’s net worth as accurately as possible. If the business has different kinds of income operations, an insurance agent must ensure the sales figures and payroll data are separated by business class.
In addition to knowing the size of the building in which the business is located, an insurance agent also needs to know the replacement cost of it and the contents inside. Contents should include furniture, computers, tools and machinery.
Additional Policy Needs
If an agency offers additional policies that may benefit a client, an agent should review them with his client. These additional policies include flood insurance to offer coverage in the event of water damage, workers’ compensation insurance, commercial auto insurance and fidelity insurance.
A commercial insurance client uses an insurance policy to help protect her investment. It is important for the client to know the details of the policy. When educating a client about the commercial policy, an agent should review the liability limits, losses not covered in the policy, how deductibles work and how to file a claim. It is also a good idea to educate a client about the reasons why commercial insurance premium may change.
Double-Check the Information
An insurance agent should always double-check the spelling of his client’s name and business, verify the accuracy of the addresses provided and make sure the contact information and Social Security numbers provided are written correctly. It is also a good idea to have the client look over the information written down to verify it is correct.