Everywhere you look these days, it's common to have side hustles. A lot of people want to go into business for themselves, but don't feel like they can truly afford it. In the end they seek additional income sources that help make ends meet or pursue passions, while secretly hoping that they can someday do it full time. We've all had that family member that has started selling Scentsy, Amway, and many other products. However, when it comes to something as important as insurance, it's imperative to consider the expertise and dedication of the person you trust to protect your assets. Let's delve into the topic of insurance agents working part-time or as a side hustle, and why it's crucial to choose a seasoned professional for your insurance needs.
The Rise of Side Hustle Insurance Agents
In recent years, part-time and side-hustle "professionals" in the various industries underneath real estate have sprung up as more money than sense was flowing through the various prongs of real estate. That included real estate agents, mortgage brokers, and home insurance agents. It seemed like the increasing number of individuals selling insurance part time as a side hustle mushroomed. The insurance industry is known for residual income and that dream of hitting the golf course everyday at 2:30 for a tee time has a lot of appeal. While it's encouraging to see friends and relatives venturing into new endeavors, it's vital to understand the potential risks that come with relying on a part-time insurance agent, especially when it comes to commercial insurance for your Texas Business.
Why Commercial Insurance Requires Expertise
Commercial insurance is a complex field that demands extensive knowledge and experience. As businesses face ever-evolving risks, including cyber threats, employee injuries, and liability exposures, having comprehensive coverage is paramount. Different industries and business types require different types of insurance. This means that trusting your business to a part-time insurance agent means placing trust in them to know not only the various insurance products that you need, but also the policy language that goes with them. Navigating the intricacies of commercial insurance policies, company requirements, and underwriting guidelines is no easy task.
The Hazards of Inexperienced Agents:
Many of the part-time agents that we have seen enter the insurance marketplace were primarily focused on home insurance. It was easy to sell on price in recent years as an independent agent because it seemed that there was always an insurance company looking for market share with a lower priced product. That made the side hustle easier and didn't allow for truly learning the sales skills needed to sell on the value of insurance. The selling on price game has completely dried up in the last 18 months as the insurance business has changed drastically with major losses to carrier balance sheets.
This change in the landscape has led many insurance agents, not just side-hustle agents, to migrate to targeting the commercial insurance market instead of the personal side. Unfortunately, this has created several challenges for business owners in Texas as many full-time agents and part-time agents have tried to jump into the deep end of the pool looking for new potential clients and premiums to sell. These inexperienced agents often lack the necessary understanding of a business's unique risk profile or the nuances of commercial insurance policy language, potentially putting an entire business at risk. It's not done nefariously, it often just happens out of ignorance.
Choosing a Reliable Insurance Partner:
When selecting an independent insurance agent for your business, it's essential to make an informed decision. It's honestly counterproductive to have five different agents around town looking at your commercial insurance policies. Interviewing five different ones to select one to take things to market is smarter! That one can go to the best places and present you as an ideal client to the insurance company to get the best terms. This is where it differs greatly from "regular" home and auto insurance.
Here are a few important factors to consider:
1. Experience and Expertise: Ensure your agent is experienced and trained in commercial insurance. While they can be somewhat new to the field, they should have the necessary backing, training, and mentorship to provide proper risk assessment. If they aren't asking you a lot of questions about your business, it's likely a sign to run!
2. Risk Assessment Process: An experienced commercial insurance agent is going to have a process to get the necessary information to make a strong case to the insurance companies on your behalf. This can mean saving thousands of dollars on premiums, deductibles, or including coverage that might have been missed.
3. Total Cost of Risk: A professional commercial agent should be able to present the total cost of risk to your business. This means more than just looking at premium dollars. It looks at what your maximum cash exposure is if something bad happens to your business. This changes how you view your needs.
While supporting friends and family in their side hustles is commendable, entrusting your business's insurance needs to a part-time agent can be risky. The complexity and ever-changing landscape of commercial insurance require the expertise and experience of a full-time professional who is focused on protecting your business. By choosing a knowledgeable and trained agent, you ensure that your business is safeguarded against potential risks and liabilities.
At Insurance For Texans, we understand the importance of having a reliable insurance partner. Our dedicated team of experienced commercial agents is committed to providing thorough risk assessments, comprehensive coverage options, and the promise of certainty for your business. That promise of certainty is knowing that when your time of need arises, it will be taken care of. This may sound like a small statement, but at that moment it is huge. Don't jeopardize your hard work; trust the experts to protect what matters most to you.
Remember, it's essential to work with an insurance agent who is fully dedicated to your insurance needs. Reach out to Insurance For Texans today for guidance and expertise in navigating the complex world of commercial insurance. Because when it comes to protecting your business, there's no room for compromise.
Call us at 469.789.0220 or hit that button below to work with a team of full-time professional insurance advisors who put your best interest at the front of every transaction.