At a glance
- Engineering has long been viewed as a complex and confusing area of the insurance market that many brokers shy away from
- Our Engineering Combined product offers a straightforward solution for brokers and customers, with insurance and inspection covers available under a single policy
- We discuss how this combined product can create cross-selling opportunities and help brokers to forge better, longer-lasting relationships with customers
There are a number of reasons why engineering insurance policies may have been undersold in the past.
Engineering Combined – what is it and who needs it?
Our Engineering Combined product was developed with SME customers in mind, but it is equally suitable for mid-market customers.
It offers seven insurance covers, alongside inspection services, under a single policy:
- Computer Insurance
- Machinery Movement
- Machinery Breakdown (Sudden and Unforeseen Damage)
- Deterioration of Stock
- Contractors’ Plant
- Contract Works Construction
- Machinery Loss of Profits
The policy is designed to eliminate gaps in cover that might exist without it. For example, a customer might find they are not covered under their Material Damage and Business Interruption policy for damage resulting from a mechanical or electrical breakdown. However, they would be protected if they took out the Machinery Breakdown and Machinery Loss of Profits covers included in our Engineering Combined policy.
The flexibility of the policy also allows customers to focus their insurance spend on the items of machinery or equipment that are most critical to their business.
Look out for further Insider articles discussing the additional covers in greater detail.
One reason is that many customers may have mistakenly viewed these covers as luxuries they can do without. Another reason is that many brokers may steer clear of this area of insurance altogether, fearing its complexities.
As Ian Hutchinson, Engineering Governance Manager, Zurich, observes: “Most brokers concentrate on casualty and fleet, and engineering is a niche market that is often not on their radar.”
We know that engineering is an area of insurance that offers huge opportunities for brokers, but we also recognise its complexities and understand that you want a simpler way of protecting your customers. That is one of the reasons why we launched Engineering Combined – a combined engineering insurance and inspections product that remains unique to the market.
Here, we explain the key benefits for you and your customers.
Cross-selling and up-selling opportunities
Brokers who give engineering insurance a wide berth are missing out on valuable cross-selling and upselling opportunities.
Our Engineering Combined policy makes cross-selling and upselling easier by offering the full range of covers your customers might need (see boxout) under a single policy.
Jason Knowles, Head of Engineering Development at Zurich Engineering, describes how one broker generated £15,000 of extra revenue by placing five additional engineering covers for a food manufacturing business.
Jason says: “The customer had initially just requested an engineering inspections policy, but when the quote came back and they saw that they were not covered for deterioration of stock, they considered what additional exposures they might have.
“The broker ended up placing cover for deterioration of stock, machinery breakdown, machinery loss of profit, computer and hired-in plant. They couldn’t believe how easy it had been to upsell an extra £15,000 under one account.”
In the above example, the broker was also left with an extremely satisfied customer.
Jason says: “Having suddenly identified all these additional exposures, the customer was delighted to be able to find the cover they needed under a single policy.”
A helpful feature of our Engineering Combined product is the policy schedule, which sets out exactly which risks are covered and which are not.
Ian says: “The schedule gives complete clarity to the customer, and is a helpful selling point for brokers.”
Another key benefit for brokers and customers is the simplified policy administration process.
Ian explains: “Instead of having five policies with five renewals, you can now have one document and one renewal; for the broker, it’s a lot more straightforward.
“In addition, because it’s easier for us to administrate, this enables us to write lower premiums than if these were all separate covers.”
How we’re helping our brokers
Our Engineering iGuide explains how our Engineering Combined product could help you to forge better and longer lasting relationships with your customers and maximise cross-selling and up-selling opportunities.
Jason says: “We are really keen to raise awareness about the product, especially among brokers who may only be thinking about more traditional covers.
“The more conversations we can start with brokers, the firmer the ground they will be on when talking to their customers about the key risks they face.”
To discuss any aspect of this article further, speak to your usual Zurich contact.