Things are looking up in the area of commercial builder’s risk packages NY. Business in this particular sector is likely to pick up during the post-pandemic economic recovery in the U.S.
Spurring on this rebound is the increase in construction spending by the government and private sectors. As more and more infrastructure projects break ground, there is expected to be a corresponding increase in the demand for builder insurance.
But to tap the rising opportunities to grow their builder’s risk portfolios, insurance agents have to deal with certain challenges. Many commercial builders still face difficulties as the U.S. economy recovers from the Coronavirus crisis. Many firms are still wary of expanding their workforce due to the risk of infection among workers. Others have been badly affected by the recent weather disturbances in some parts of the country.
Insurers are also subject to some constraints. The results of one study showed that many are unprepared to weather the difficulties wrought by the pandemic.
Faced with these factors, agents dealing in builder’s insurance find themselves having to develop new strategies for marketing of commercial builder risk insurance. Some options include:
1. Reviewing existing client portfolios for growth prospects
It’s always a good idea for insurance agents to establish regular communications with existing clients. One way to do this is by taking advantage of opportunities such as the scheduled renewal of insurance policies. They could also review insurance coverages and determine if there are gaps in areas such as workers’ compensation.
It is vital for agents to get to know their customers better and show that they are after their clients’ best interests. Asking about the progress of their projects and their future plans can be especially effective.
It would also help to discuss builders’ risk coverage with customers that are planning new construction projects, explaining how it differs from existing policies.
Insurance agents should ensure that their clients know what their current policies don’t cover. Many builders and contractors with commercial property insurance may only be covered for tools, equipment, and materials at the job site. This could leave them vulnerable to damage that may occur in transit or offsite storage.
2. Expanding community networks
Networking is one of the most effective ways to find new clients. It might be best for insurance agents to vary their network expansion efforts and identify those that effectively boost their builder risk portfolios. Events such as builders’ fairs, exhibitions, and construction industry trade shows are all good places to find leads.
Volunteering with local nonprofit organizations is also a good idea. Agents who volunteer can make connections and strengthen their community reputations at the same time. The connections formed through volunteer work can help improve brand visibility and forge stronger links with builders’ risk insurance.
3. Connecting with professionals in related fields
It is always advantageous to connect with professionals in the construction industry. Agents that become part of such groups can take advantage of referrals and insights from other members. In particular, it would be beneficial to connect with real estate agents, mortgage brokers, and financial planners.
Clients tend to appreciate insurance agents that have close relationships with professionals allied with their niche. Most will be grateful for referrals to experts who can provide essential services.
4. Collaborating with influencers and businesses in related industries
Besides targeting potential clients directly and seeking referrals, insurance agents should also connect with community members that have influence in the area of builders’ risk. Among these are people involved in construction projects, including banking professionals and permit office employees from the local government. Connecting with these people will establish insurance agents as trustworthy industry resources.
5. Keeping abreast of industry trends
Insurance agents can further build credibility within the insurance industry by keeping abreast of economic developments impacting their communities. It would be helpful to check local sources of information such as online community news and announcements from economic development agencies. Identifying potential growth areas will help agents act decisively. They will then be in a better position to boost their standing as builders’ risk insurance agents.
About Snyder Specialty
Snyder Specialty, LLC is a New York-based underwriting facility that provides a range of property and liability solutions for personal and commercial lines. Specializing in coastal properties and hard-to-place risks, Snyder Specialty expands your current capabilities with proven solutions for complex risks. Find out more about the company’s range of services by calling (718) 362-8039.
