Build Your Business by Choosing a Commercial Insurance Niche
Business owners have lots of options of brokers and agents to choose from, considering the thousands of local and online agencies. The challenge lies in getting clients to choose you over the competition.
Commercial brokers and agents commonly try to be all things to all types of businesses. The downside is that customers may see you as a jack-of-all-trades, yet master of none.
From the business owner’s perspective, many prefer to partner with a trusted insurance professional who specializes in their industry and understands the daily risks they face. That’s how a commercial niche market can give you a distinct advantage.
In this post, we’ll define a commercial insurance market niche, provide tips on how to find the right industry, and give you concrete examples of niche specialties. We’ll also outline how to develop expertise in your niche, provide marketing strategies, and give tips on how to scale your business.
Shortcuts:
What Is a Commercial Insurance Market Niche?
Niche Insurance Agents Have an Advantage Over Generalists
Identifying the Right Niche for your Agency
4 Examples of Commercial Insurance Niches
Developing Expertise in Your Niche
Creating a Marketing Strategy for a Commercial Insurance Niche
Scaling and Expanding Your Niche Business
What Is a Commercial Insurance Market Niche?
A niche commercial insurance market refers to a sales process that focuses on specialized coverage for specific types of businesses.
Unlike a commercial policy that broadly covers a business, a niche policy offers tailored coverage to address the inherent risks and liabilities of a particular industry.
Commercial insurance niches also generally include unique risks that standard policies won’t insure.
For example, landscapers may want to add pollution liability to protect against chemical applications or spillage.
The following businesses are other examples of niche commercial markets:
- Beauty salons
- Restaurants
- Fleet business
- Trucking and logistics
- Pet services
- Property rentals
Virtually any industry can become a niche market.
Niche Insurance Agents Have an Advantage Over Generalists
While it may be appealing to cast a broad stroke in your commercial marketing efforts, this approach may not be as fruitful as you expect.
From the customer’s viewpoint, many would rather work with an agent who is well-acquainted with their industry’s risks and offers specific insurance products to protect against them.
Specializing in a niche benefits you by increasing your sales and bringing in a stream of referrals.
In essence, when agents try to be all things to all people, they can’t serve their clients as well as an agent with intensive knowledge of an industry.
Identifying the Right Niche for Your Agency
With so many niches to choose from, how do you narrow your choices to find the right niche for your agency?
The answers to the following questions may point you in the right direction:
- Has another agent in my area already established a niche in this industry?
- Is there room for another player in a particular niche?
- Which area businesses are underserved relative to their insurance needs?
- What are the pain points of businesses in a potential niche?
- Do you have personal interest or knowledge of a particular industry?
- Do you have contacts in a specific niche industry?
After reviewing the questions, you should be able to narrow your options down to two or three potential niches to explore further.
4 Examples of Commercial Insurance Niches
To give you a better understanding of the value of specializing in a commercial niche, we’re outlining four niches to specialize in within the building trades.
1. Building Trades
The construction industry relies on skilled brokers and agents to cover the numerous hazards present on job sites.
For example, falls remain the leading cause of fatalities in construction, while workers also face risks such as slips, trips, structural collapses, and other dangers.
Accidents and equipment failures can bring an entire project to a halt, resulting in significant financial losses for a business.
Additionally, construction firms must contend with various weather-related threats, including wildfires, earthquakes, hurricanes, tornadoes, and flooding.
The building trades encompass many subspecialties that require specialized insurance coverages – each with its unique risks. Because the businesses within the industry are related, it can be lucrative to specialize in more than one type of business.
After establishing a few contacts in one industry, the word will spread among tradespeople. As you become known as the insurance agent or broker of choice, it will likely lead to a stream of referrals from other businesses within the trades.
Commercial insurance opportunities abound within the building trades. Here are some subspecialties to consider pursuing:
- Carpenters
- Drywall installers
- Sprinkler system installers
- Cabinet makers
- Electricians
- Plumbers
- Roofers
- Solar installers
- Grading and excavation contractors
- Paving and road contractors
By partnering with the right insurance companies, you can create a customized insurance program that covers the risks associated with the business’s unique risks.
General contractors, graders, excavators, and other tradespeople commonly seek the following types of coverages:
- General liability
- Auto liability
- Property liability
- Inland marine
- Umbrella liability
- Contractor’s pollution liability
- Employment practices liability
- Cyber liability
- Workers’ compensation
By offering a comprehensive commercial insurance program, you’re letting business owners know you’re an expert at your craft. They’ll appreciate knowing you cover every critical base to protect their business.
2. Landscaping
You’ll also find many subspecialties under the umbrella of the landscaping industry. Landscaping business owners and their employees face a variety of risks by virtue of their operations.
As an insurance broker or agent, you can prove your worth by assisting business owners with identifying risks and establishing safe processes to reduce their claims exposure.
Check out some of the subspecialties within the landscaping industry to find more opportunities for clients:
- Pesticide and herbicide application services
- Lawn maintenance services
- Landscape gardening services
- Irrigation installation services
- Seasonal landscaping services
- Organic fertilizing and pest control services
- Compost installation services
- Landscape design services
In networking with landscapers, you’ll learn about common types of claims they encounter, including:
- Worker injuries
- Accidents in company vehicles on the way to jobsites
- Damage to tools and equipment
- Theft of tools and equipment
- Environmental risks from pesticides, fertilizers, and herbicides
A comprehensive landscaping business commercial insurance program includes several of the following types of coverages:
- General liability
- Auto liability
- Property liability
- Inland marine coverage
- Umbrella liability
- Crime coverage
- Contractors pollution liability
- Employment practices liability
- Cyber liability
- Workers’ compensation
3. Tree Care
One of the more dangerous risks within the building trades is tree care. Due to the risks of working with heavy equipment and falling, it’s essential for business owners to focus on safety.
These are just some of the risks tree care companies face:
- Property damage caused by an employee
- Worker injuries
- Land damage due to chemical spills
- Human exposure to toxic substances
- Trespassing (accidental or intentional)
- Theft or vandalism of tools
- Allegations of an owner or worker committing a crime
Business owners value an insurance agent or broker who knows their operations inside and out and is willing to help them maintain a proactive stance on safety.
As with other businesses, the tree care industry has several subspecialties, such as:
- Tree pruning and removal companies
- Logging companies
- Tree spraying services
- Landscaping companies
- Lawn care services
- Sprinkler installation services
- Snow and ice removal services
Depending on the subspecialty, you may want to recommend coverage from the following list:
- General liability
- Auto liability
- Property damage liability
- Inland marine coverage
- Umbrella liability
- Crime coverage
- Contractors pollution liability
- Employment practices liability
- Cyber liability
- Workers’ compensation
4. Greenhouse and Nursery Growers
The greenhouse and nursery growers industry is strongly connected with the landscaping industry, yet its risks are uniquely different.
This niche includes some businesses you may not have thought about insuring, including:
- Flowers and ornamental plants
- Bushes, shrubs, and trees
- Tree nurseries
- CBD and hemp
- Fruits and vegetables
- Organic foods
- Herb growers
- Christmas tree growers
- Hydroponic and aquaponic growers
In addition to risks concerning pesticides and herbicides, nursery growers have to contend with pests, plant diseases, and the weather.
Workers in these types of businesses are prone to injuries due to heavy lifting. Also, chemical exposure can cause allergies, illnesses, or chemical reactions.
In your role as a broker or agent, you can provide expertise about the best commercial insurance products to protect their workers, products, and customers.
A package plan that includes any of the following appropriate coverages gives greenhouse and nursery growers the complete protection they need:
- General liability
- Auto liability
- Property damage
- Equipment breakdown
- Product liability
- Pollution liability
- Employment practices liability
- Cyber liability
- Workers’ compensation.
Developing Expertise in Your Niche
To promote yourself as an insurance leader in a niche business, you can bolster your industry knowledge, network within the industry, acquire more insurance credentials, and strengthen your brand.
Specific things you can do to learn more about a niche are to attend industry events and trade shows. You might also request to be a speaker at an event, which will help you in networking. Attending conferences, industry associations, and trade groups are other ways to get involved in a niche industry. These types of events provide opportunities for you to provide free resources and educational content.
Clients will also value an agent or broker who continuously works to improve their craft. With that in mind, obtaining specialized training or insurance certifications such as CIC, CRM, or CISR works to your benefit.
Creating a Marketing Strategy for a Commercial Insurance Niche
The best marketing strategy for a commercial insurance niche begins with your website. In the interest of time, many business owners start their search for commercial insurance online.
It’s a place where you can showcase your expertise and add niche-specific content. Your site is also a place to share insurance trends and niche industry information making headlines in the news.
Websites and landing pages are prime locations to post testimonials from happy clients. Case studies that demonstrate how you or your products have helped protect businesses in your niche will also be meaningful for online visitors.
Share your articles on LinkedIn, Facebook, and other social media sites and get double duty from them. Another option is to purchase paid social media ads if your budget allows.
Business events, such as attending Chamber of Commerce meetings, may prove to be lucrative as they’ll allow you to partner with complementary businesses such as attorneys, bankers, CPAs, and other local business professionals.
Scaling and Expanding Your Niche Business
The four examples of niche markets we’ve listed here are prime examples of how to start in one niche area and expand into related niches.
In building a house or office, clients may need to clear trees. Also, landscapers will need to buy plants and shrubs to enhance the property’s beauty. Builders also have contacts with electricians, plumbers, roofers, architects, interior designers, and more.
The internet expands the potential to grow and scale your niche outside of your geographical area.
As your business grows, you’ll need to invest in hiring and training team members who are available to serve your clients.
Lastly, as you learn about more trends, your partner companies may introduce new products to offer to your clients. For example, as data breaches became problematic in the early 2000s, insurance companies sprang to the rescue with cyber liability insurance.
While we can’t know what the future will bring, trends may change your client’s needs. By responding to changes quickly, you will ensure retention.
Over time, you may decide to use your profits to upgrade your technology to improve your team’s efficiency. A screen-sharing tool is a great investment as it simplifies the process of hosting virtual sales meetings.
Imagine the slides you could create to show clients exactly how your insurance products differ from standard commercial insurance packages. Add slides to depict case studies and claim examples of how your niche insurance products helped real business owners prevent and cover losses.
How to Screen Share Your Way to Sales Success gives ideas on how you can improve your sales skills using screen sharing.
With CrankWheel presentation software, you can easily personalize your slides, and customers can join using a simple link – no download required. Sign up today and try the software for free.