CRISIS PLANNING TOOL CAN SAVE THE DAY AND THE ACCOUNT!
Offering business continuity planning services benefits you and your clients alike.
In theory, business continuity planning is a slow process. Ask a question and wait for the answer, ask the next question and wait again.
But when Breckon Husband, of AON (Hamilton, ONT) heard of a client in serious distress, he quickly reviewed the relevant section of the crisis plan, met the client, and provided assistance for a very difficult situation within hours. According to Husband, this proactive response has cemented a long-term relationship with his client, even though the loss was uninsurable.
That’s one of the key goals of business continuity planning. We recommend that agents use planning software to:
- Attract new business
- Build retention on Commercial Lines accounts
- Minimize negative reaction to uninsured losses
- Improve loss ratios
- Create opportunities for fee income
Agents who offer business continuity planning software have told us that 90% of their Commercial Lines clients respond quickly and positively to their offers.
You can use this tool in many ways to enhance your book of business and to boost your bottom line. Here are two suggestions:
1. Ask your clients if they have a business continuity plan.
If the answer is “yes,” offer to audit their plan and use a software template as your benchmark. Charge a small fee ($1,000-$2,000). If the client finds that their plan needs more work, you can do the work for an additional fee.
If the answer is “no”, offer to:
- Sell them the software that will let them create their own plan in house.
- Work with senior management to build a plan with them. Charge a fee of $2,000-$5,000 for your services, depending on the size of the account.
2. Ask your prospects if they have a continuity plan or if their current agent offers this service.
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If they say “yes,” offer to audit the plan for a fee.
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If they say “no,” you’re still positioned to look a lot better than the competition by offering this service.
If the account you’re targeting is months away from renewal, the client might be reluctant to change their agent in midstream. In this case, sell them the software or your expertise as a project manager, offering to give them credit against their premiums if they move their business to you in the future.
If a client is just about ready to make the decision to go with your firm, give away the software as a loss leader that will stress your “degree of uniqueness” compared with your competitors.
The more widespread and successful your business continuity planning, the better for you and your clients alike!