How to sell commercial insurance to new contractors

Get there in the first weeks

A contractor usually needs coverage before taking a first job, and a general contractor or client will usually ask for a certificate of insurance before letting them on site. That's a real deadline, and at that point there's no incumbent agent to displace. It's why it pays to watch new licenses rather than work from an aged list.

Find them by trade and territory

New license records tell you the trade, the location and the license date. Use them to pick the classes your carriers actually want, in the counties you can serve, instead of working every contractor in a state.

Lead with what they need this month

• General liability, and getting a certificate out quickly when a client asks for one.
• Workers' compensation: whether they need it depends on the state and on whether they have employees, so be ready to explain it.
• Commercial auto, once the personal truck starts carrying tools to job sites.
• Tools and equipment cover, which is often the first claim a small contractor has.
• Whether their state or license class needs a bond, and who can write it.

Stay within the rules

Business numbers aren't automatically exempt from calling rules, and many small contractors license under a personal cell. Check numbers against the National Do Not Call Registry, don't use an autodialer or prerecorded message without the consent the TCPA requires, and honor every opt-out. For email, follow CAN-SPAM. Your compliance team or lawyer should sign off on your process.

Measure it by the month

A new contractor who isn't ready today often will be soon, so keep the record and follow up. Compare what you pay for the list against the commission on the accounts it brings in over a year, not against a single week's calls.