https://completemarkets.com/Article/article-post/374/Solidifying-The-Bond-With-Your-Customer/
Solidifying The Bond With Your Customer
Very few people will recognize the name Hikari, unless they're in the beauty salon industry. Hikari is a scissors manufacturer and distributor. Not just any type of scissors, but very expensive scissors used by hair stylists. A small, five-inch pair of scissors might sell for $400, and more expensive models approach $1,000. Considering that the average hair stylist grosses about $30,000 to 35,000, this is a market in which the buyers spend 1% to 2% of their gross earnings for two pieces of metal connected with a screw and washer. You might think that it's a pretty tough market, but the U.S. distributor sells about a thousand pairs per month with a total employee of five.
The intriguing thing is that Hikari has never purchased any advertising! They have built their business with seminars and other informational tools that (1) help stylists to perform their jobs better and (2) help their distributors to be more professional within the salon industry (which benefits all the manufacturers they may represent).
In both cases, the middle-man distributors and the actual hair stylists, Hikari utilizes audiocassette programming and live seminars to carry their message. So although insurance and scissors may be miles apart in product, they're remarkably close when it comes to innovative marketing.
Let's first look at the programs for the end user: the hair stylist. Continual research has identified several problems affecting this group. One had to do with the scissors: the distributors weren't taking time to cover all the bases when delivering them to the buyer. Another problem was a high rate of carpal tunnel syndrome among stylists due to repetitive motion. A third problem area concerned new laws regulating the disinfecting of salon tools to eliminate HIV contamination. Other areas were also addressed, but those are currently the top three concerns.
Firmly believing that people buy from people who help them, Hikari devotes a lot of attention to helping the hair stylists. Let's look at the solutions to the problems just mentioned:
Delivery. Rather than relying on the sales rep to deliver the scissors properly, Hikari developed a 'delivery tape.' This 15-minute audiocassette thanks customers for their purchase, explains the proper care and maintenance of the scissors, details the warranty procedure in case of a problem, and concludes with an 800 number for any questions. The cassette packaging also includes a warranty registration card that, when filled out and returned, offers a free leather holster for the scissors.
Carpal tunnel syndrome. Addressing this issue required visual media, and the cost of a video was prohibitive. Assimilating all the available research, including some commissioned by Hikari itself, the company developed a 30-minute, seminar-style presentation on proper cutting techniques to avoid carpal tunnel syndrome. Corporate personnel who travel in the field were trained to present this seminar, which invites questions and answers. As they travel, they arrange for local distributors to set up multi-salon seminars to view the presentation. They also offer it as an adjunct to any convention or show they attend.
Disinfectant. The solution to this problem combined introducing a new product for the disinfectant of tools with an educational audiotape covering health issues and proper disinfectant techniques. To this, Hikari added an award program: Distributors fill out checklists about the cleanliness and disinfectant process in their various salons, and salons that made the grade are presented an impressive award for display in their salons.
How does all this apply to the insurance industry? Let's look again by category.
Delivery. When was the last time you reviewed your agency or brokerage procedure for the policy delivery? Are there any rough edges that need to be smoothed? Is the client educated about the coverage itself, as well as in the benefits you provide and to which they are entitled? Do you review all the other coverages you can write? Have they been introduced to their service representative? Most important, does every client receive this same information-including those whose policies may be delivered by mail? Would a 'delivery tape' smooth out some of the rough edges and insure that all clients receive all the information they should?
Seminars. Granted, a lot of agencies present seminars, but are they addressing the right topics? For instance, Workers' Comp is a hot topic, and many agencies have put together seminars to cover it-and have been disappointed in the turnout. True, the topic is hot, but the agency has also entered the competitive field of seminar-giving. Everyone and her brother have been putting on seminars, and one would do well before looking at the competition before plunging in. Moreover, I heartily recommend avoiding seminar topics that smack of sales commercials.
Ask your clients what their current concerns are. It might help to have a topic checklist for them to prioritize for you. Think of subjects such as repetitive stress syndrome, independent contractor regulations, hiring undocumented workers, automated communications, safety in the workplace, etc. Each of these topics can be tied into insurance coverages or operational procedures that can be of financial benefit to your agency-but they don't appear to be flagrant commercials at first blush. Other ideas might be to tie catastrophe preparedness (a timely topic) to business interruption insurance, or protecting leased equipment with property coverages (a lot of companies are being 'double dipped' by equipment-leasing payments that also include insurance coverage on the equipment).
When doing a seminar, test it out on some of your current clients first. If it works, invite prospects to join with clients for subsequent seminars. Don't forget to invite the local media; you might get some excellent press coverage!
Awards. When was the last time, if ever, that you presented a client with an award for being an outstanding client? Several years ago, one of our suppliers sent a typical holiday gift to us, but there was a difference: On opening the package, we found a plaque engraved with the words, 'Sound Marketing, Inc., Outstanding Customer. A customer is the most important visitor on our premises. He is not dependent on us, we are dependent on him. He is not an outsider in our business, he is a part of it. We are not doing him a favor by serving him; he is doing us a favor by giving us the opportunity to do so.'
Needless to say, the plaque went up on our wall, and we are still doing business with that supplier. In fact, since their service matches the philosophy of the plaque, 'it is almost an impossibility to consider changing vendors. As an IMMS Member, you have a wealth of information that expands far beyond insurance to correspond to many of the issues faced daily by your clients. Spend a little time researching the library and you'll come up with a lot of material that can help you develop your client relationships and secure their business for the future. Just remember, it's up to you to carry the message-before your clients need to ask!
https://completemarkets.com/Insurance-Companies-Workers-Compensation-class-code-8822/Storefronts/
What is Insurance Companies Workers Compensation (class code: 8822)?
Workers Compensation Insurance for insurance companies (classified under class code 8822) is designed to protect employees involved in administrative, office, and clerical work within an insurance organization. This coverage helps pay for medical expenses, lost wages, and rehabilitation if an employee is injured or becomes ill due to work-related activities.
Although the risk of physical injury is lower in office environments compared to high-hazard industries, there are still potential exposures such as repetitive stress injuries, slip-and-fall incidents, or travel-related accidents. This policy is essential for managing liability exposures and complying with state-mandated coverage requirements.
Who needs it
This type of workers compensation coverage is typically required by:
Insurance carriers and underwriters
Claims processing firms
Third-party administrators (TPAs)
Insurance brokerages and agencies
Even in low-risk office environments, employers must protect their staff from work-related injuries and illnesses, and most states require this coverage regardless of the perceived level of operational hazard.
What it typically covers
Class code 8822 Workers Compensation Insurance generally covers:
Medical expenses for work-related injuries or illnesses
Rehabilitation services
Temporary or permanent disability benefits
Lost wages due to time away from work
Employer liability for certain legal claims arising from employee injuries
For example, if a claims processor develops carpal tunnel syndrome from prolonged computer use, this insurance can help cover the medical treatment and any time away from work.
Common exclusions or limitations
While comprehensive, workers compensation policies often exclude:
Injuries occurring outside the course of employment
Self-inflicted or intentionally caused injuries
Injuries sustained while violating company policy or under the influence
Employers should also be aware that coverage may not extend to independent contractors unless specifically included.
Factors that influence cost
Several underwriting factors determine the cost of a Workers Compensation policy for insurance companies, including:
Employee payroll size and classification
Claims history and safety record
State-specific regulations and rate filings
Implemented risk management and workplace safety programs
Office-based operations like those under class code 8822 typically benefit from lower rates due to reduced workplace injury exposure, but maintaining safety protocols is still key.
Proof of insurance & compliance
Proof of Workers Compensation coverage is often required for licensing, contracts, or state audits. Employers may provide a certificate of insurance (COI) to demonstrate active coverage and compliance. Failure to maintain adequate coverage can result in fines or legal complications, depending on the jurisdiction.
To understand how documentation and COIs apply more broadly, see our page on Understanding Insurance Certificates and Workers' Compensation.
How to get a quote
To get a quote for Workers Compensation Insurance under class code 8822, provide details such as your business structure, total payroll, number of employees, and claims history. A licensed agent can help you compare coverage options and ensure compliance with local requirements.
Request a quote today to get started on coverage tailored for your insurance business.
Frequently Asked Questions
Is Workers Compensation required for office employees at an insurance company?Yes, most states require Workers Compensation coverage for all employees, even in low-risk office environments like insurance companies.
What types of injuries are typically covered under class code 8822?Coverage can include slip-and-fall injuries, repetitive strain injuries like carpal tunnel, and other work-related medical conditions.
Can independent contractors be covered under this policy?Independent contractors are usually not covered unless specifically included in the policy. State definitions and rules vary, so check with your insurer.
How can I lower my Workers Compensation premiums?Implementing safety programs, maintaining a clean claims history, and accurately classifying employee roles can help reduce premiums.
What documentation proves I have Workers Compensation coverage?A certificate of insurance (COI) serves as official proof and may be required for contracts or regulatory compliance.
Still have questions? Talk to a local insurance expert.