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... surety bonds-guarantees that contractors will complete construction projects-account for about 15 percent of the agency's $2.25 million in annual premiums. Three-quarters of the agency's business is in commercial lines, and about half of that is with construction businesses, Ward says. When I got in the business in 1979, no one in our immediate area was providing that service, ' Ward says. But because of the defense construction boom and our proximity to Fort Hood , it was a natural market to explore. It got down to just recognizing the need and doing something about it. To develop this new market, Ward set about establishing his agency as a good backup source for contractors. He approaches prospective contractor clients and asks for the chance to arrange their surety credit. If the prospect is happy with his or her current ... as he calls them, are so profitable the Everhart has abandoned more conventional lines of business. Two of his four niche programs-notary public bonds and used-car dealer bonds-are marketed solely within Texas . The others-personal watercraft (jet ski) insurance and hole-in-one coverage-are marketed outside the state as well. When Everhart started his agency on April's Fool's Day 1970, he handled standard fire and casualty lines and specialized in the trucking industry. But he quickly found that he was spending most of his time convincing carriers to underwrite programs instead of selling products to potential customers. That seemed like a waste of time. So he dabbled in niche markets, enjoyed the change of pace and eventually dropped his other lines of business. From that early experience, Everhart developed three agency rules for any potential niche market: there should ...

...ecause of the defense construction boom and our proximity to Fort Hood , it ...casualty lines and specialized in the trucking industry. But he quickly found ...