Agents and brokers who want to expand their book of business to include Lessors Risk Only (LRO) commercial property insurance – or those who may wish to write more LRO – need to first look at what makes a good prospective client. From a risk standpoint, some clients are more attractive than others and it’s where we start in building out a book of business and creating a successful client mix.
LRO clients historically have low loss ratios and presents a unique market opportunity with lots of potential.
For the broker/agent who wants to write more LRO accounts, it’s important to note that while some business do tend to be more regionally oriented in nature, good, stable LRO clients can be found in most every community.
As is typically the case, the best prospects have a long, verifiable history of stable, high occupancy rates and little or no losses. Seeking out these prospects will likely utilize connections and contacts you already have as an insurance pro.
Shake that Tree
Here we start with the lowest hanging fruit and expand outward:
1) Take a deep dive into your current client files of tenant-based businesses you are lady insure. By reviewing these, you should be able to suss out the proper owner listed on the additional insured endorsement. Your client, a tenant of the property, will be happy to share their opinion of their landlord with you, because we know you, the great insurance pro you are, has a strong rapport with your existing book of business and can get a read on this potential LRO prospect.
2) Connect with commercial real state brokers, great sources of leads. You’ll find them networking away at Chamber meetings, civic and community organizations such as Rotary and Lions’ Clubs, real estate organizations such as BOMA … and even your children’s school and extracurricular events.
3) And speaking of networking, meet up with property managers, too. Property managers typically attend several of the same type organization meetings, and are well positioned to make trusted-source recommendations to property owner clients.
4) When you’re out and about, take note of properties for lease in your area and make your own custom “hit list” of active listings. Look for high-quality, well-managed, and high-occupancy properties, check to see if you already know a tenant, property manager, or property owner for the property, and work your network magic. If there isn’t a connection, raise your visibility. (We’ll look at how to be creative about marketing outreach in a future blog post.)
5) Google. Wow; how did we manage before Google? Relying on the “big yellow book” was inefficient and cumbersome – now all is at your fingertips. Just Google “commercial rental space” or “commercial properties for lease” and other similar search terms in the geographic area you are interested in. You will gain all sorts of information and insight from online property lease aggregators such as Loopnet and 42floors, including owners, leasing agents, and facility specifics.
Novita Insurance Solutions offers expert guidance in writing and placing commercial LRO. Contact us; we can help you gain a stronger foothold in navigating the Lessor’s Risk marketplace. Next week, more tips into growing your book of business with commercial Lessor’s Risk.