Commercial Flood
Insurance
How to Keep Your
Business in Business
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NFC 2010 Workshop | Apr. 2010 | San Diego, CA
Agenda
AGENDA:
• Introduction
• Commercial insurance
training
• Agent Perspective
• FloodSmart resources
• Discussion
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Introductions
INTRODUCTIONS:
• Moderator: Patty Latshaw
– American Bankers Insurance Company of FL
• Dorothy Martinez, CFM
– NFIP Training (GeoLearning/H2OPartners, Inc.)
• Denis Miller
– Dennis A. Miller Insurance
• Meg Bartow
– FloodSmart
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Overview
COMMERCIAL INSURANCE: A 3D
perspective
TRAINING
THE SALE
• Dorothy
Martinez
• Dennis
Miller
MARKETING
• Meg Bartow
Commercial Insurance
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Main Point 1
TRAINING: What agents need to know
• Protect Your Client, Protect Yourself
• Find your comfort zone with flood
• Offer flood coverage with every hazard policy!
• E & O Exposure
• Documentation
• Don’t underestimate your relationship with your
client
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Main Point 2
TRAINING: What agents need to know
• LOCATION,
LOCATION,
LOCATION
• Flood Zone
Determination
• FIRMette
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Main Point 3
TRAINING: What agents need to know
• Definitions
• Single Building
• Additions and Extensions
• Rigid exterior wall,
• Solid load-bearing,
• Interior wall,
• Stairway,
• Elevated walkway,
• Or a roof.
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Main Point 4
TRAINING: What agents need to know
• Residential vs. Non-Residential
• It’s ALL about occupancy
• Residential with more than 5 or more units
• Non-residential building or unit
• RCBAP
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Main Point 5
TRAINING: What agents need to know
• Know your product
• The Flood Insurance Manual is your friend
• Limited Coverage
• Loss of Profits
• Loss of Use
• Loss of Access
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Main Point 6
TRAINING: What agents need to know
• Other Considerations
• Other Insurance: (Excess Flood)
• How it responds
• Preferred Risk Policy
• Is there more opportunity in your book?
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Main Point 7
TRAINING: What agents need to know
• In the end--It’s about RECOVERY
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Introductions
AGENT PERSPECTIVE:
Denis Miller, Dennis A. Miller Insurance
• Challenges
• Real-World Experience
• Best Practices
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Communicating Risk
FLOODSMART: Communicating risk to
businesses
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Why commercial flood insurance?
FloodSmart efforts and findings
Future efforts
Feedback
Communicating Risk
FLOODSMART: Room to grow
• Currently commercial policies account for
only 5% of total NFIP policies in force.
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Communicating Risk
FLOODSMART: Business owners have
misconceptions too
• The government will bail me out
– Most businesses do not qualify for grants and if
they do, grants can take so long to get that your
business can close while you wait.
• Agents only encourage flood insurance
because adjustment is easier when multiple
perils are covered.
• Businesses can get small business loans with
favorable interest rates through the SBA.
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Communicating Risk
FLOODSMART: Businesses have more to
lose
• Business owners are supporting other families
and could be a supplier for other small
businesses, so coverage is extra important.
• Risk rating from lenders is important for
business owners, and not having flood
insurance increases their risk level.
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Communicating Risk
FLOODSMART: One-step flood risk
profile
• One-step tool on
FloodSmart.gov lets
businesses find their
risk and find an
agent all at once.
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Communicating Risk
FLOODSMART: Flood testimonials from
business owners
• Real stories of how
business owners
experienced
flooding makes the
message more
influential.
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Communicating Risk
FLOODSMART: Information for businesses
• FloodSmart.gov has
targeted information
for businesses:
– Business property risk
– What’s covered
– Understanding the
basics
– Questions for your
agent
– Agent locator
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Communicating Risk
FLOODSMART: Talking points for
agents
• Found on
Agents.FloodSmart.go
v, talking points guide
agents through the
questions prospective
businesses may have.
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Communicating Risk
FLOODSMART: PRP brochure
• Promotes low-cost
flood insurance for
businesses.
• Highlights nonresidential building
and contents policy
premiums.
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Communicating Risk
FLOODSMART: Direct mail to business
owners
• Drives home the
message that floods are
the #1 disaster and the
financial consequences
facing their business
if/when it floods.
– Mail volume 130,000
– Policies sold 1,927
• 1.45% conversion
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Communicating Risk
FLOODSMART: Findings
• Top performing markets for direct mail tended
to be coastal:
– New Orleans
– Miami
– Ft Myers
– Corpus Christi
– Biloxi
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– West Palm
– Houston
– Savannah
– Beaumont-Port Arthur
Communicating Risk
FLOODSMART: Future Plans
• Coop advertising templates
• Mail on demand
advertising tools
• Continue small
business mailing to
top performing coastal
markets.
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Communicating Risk
FACT FINDING AND DISCUSSION:
• What other challenges exist for agents?
• What motivates business owners to protect
their business?
• What other tools would help agents sell flood
commercial flood insurance?
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