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...e them quickly. And agents entering new niche markets must spend time learning...ber of children involved and the high risk of injury. It also found that camp ...

... Chubb, AIG, and most recently, St. Paul are putting their emphasis on profitable target markets. Of course, there are risks. Because niche markets are highly specialized, changes in market conditions, legislation or regulations can erase them quickly. And agents entering new niche markets must spend time learning specialized rules as well as the workings of the industry they are writing. Perhaps most important, there must be genuine need for insurance in the target market. Still, with a little homework, agents can identify potential niche markets ... was a real learning experience. Today, due to a lot of hard work and a common sense approach, construction 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 ... 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 agent, Ward asks to act as a backup in case the current agent some time in the future is unable to set up the level of credit the contractor ...

...e, a general contractor is building new homes. Since it has two officers, but ...g employer rents a piece of heavy construction machinery from the lending empl...