Insurance Journal Forums

Are you recommending an umbrella policy to clients who have both home and auto coverage with you agency? Are you advising your commercial clients to get umbrella coverage, most especially those who own commercial property or have revenues of over 500k? Are clients resisting umbrella coverage in this economy? How are you demonstrating the need for umbrella coverage? I feel this is perhaps the most undersold policy, more people need it than it is purchased. Also some agencies do a much better job advising on umbrella coverage than others. What is your agency’s policy when it comes to making sure clients secure higher limits?

I quote a personal umbrella with every account that I quote. It is our policy to write all of your business, not just bits and pieces. This not only helps with retention, but make sure that you don't have any gaps in coverage because you didn't know that the insured had a second house or a 5th car. Most of the time, when I explain to an insured what an umbrella covers and the great need for protecting their assets as much as possible, they are very willing to put the coverage in place, especially for the small price that they are in relation to what you are getting. Of course, if they don't wish to purchase it, my file has a signed letter that they were offered and didn't want it.

Brenda, That is an excellent practice, it's keeps E&O claims away and makes sure your clients are properly protected. You are absolutely right, most clients are very receptive to buying an umbrella, perhaps more so on the personal lines side than the commerical side, at least in my experience. I think getting a letter signed or sending an email confirming coverage declination is an excellent practice. I have sent an email at every renewal to those who don't purchase it, building a trail of evidence if ever needed. I have also attached voicemails to my system on people declining coverage (yes, they actually have left me a message stating "we don't need it."

As an insurance customer, I have never felt that my agent did a "hard sell" on Umbrella coverage. I have felt that it is a coverage I probably would NOT have without my Independent agent explaining its need.

On a side note since you mentioned Voicemails, I am on the phone to MANY agents in the course of doing business and get to hear every variation imaginable of "We cannot bind or alter coverage using this voicemail system ..." but recently I heard a twist that I think is EXCELLENT. The message started with three magic words "For your PROTECTION ..."

BRILLIANT!

My term "how hard does your agency..." meant how hard across the board, getting the word out to all policyholders including bringing it up again at renewal. Do you review at renewal to recommend getting the coverage or increasing the amounts of an existing umbrella? Yes, it's not a hard sell to about 90% of the people who need it in personal lines, commercial lines from my experience is a different story.

Rob, that came out from left field, perhaps you can explain yourself a little more.