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How to cross-sell to small businesses

At a glance

  • Cross-selling can help brokers generate revenue and improve customer retention
  • However, cross-selling to SMEs can present challenges, with many customers reluctant to spend money on insurance they don’t consider essential
  • We look at the best opportunities for brokers to cross-sell insurance to small and medium-sized businesses

Cross-selling and up-selling insurance to SMEs can be a challenge for brokers.

Why your customers might need new lines of cover

In this hypothetical scenario we show how a single incident can potentially lead to a variety of claims, which can be covered under a number of different policies, all available through ZTrade.

A director, manager or other key employee is injured while driving a company vehicle.

  • If the collision is with another vehicle and injured a third party – a claim could be made under the SME’s Small Fleet policy
  • The employee could be absent for a long period of time, requiring the company to hire an agency worker – Personal Accident and Business Travel
  • The accident could occur overseas, requiring repatriation costs, cancellation of the trip and overseas medical expenses – Personal Accident and Business Travel
  • Negligence might be alleged against a director personally, for their failure to undertake certain duties that could have prevented the incident (for example, missing a service on the company vehicle) – Directors’ & Officers’ Insurance

Smaller businesses generally operate on extremely tight margins, and when it comes to insurance, many are concerned only with doing the minimum required to protect their most important assets and comply with legal requirements.

However, due to the complex network of risks SMEs face, there are plenty of opportunities for brokers to discuss whether additional lines of cover are needed. Here, we look at some of the top SME cross-selling opportunities for brokers, explain changes we’ve made to our SME proposition, and discuss the benefits of ZTrade.

Personal Accident and Business Travel cover

While all businesses will insure their property, many could do more to protect their most valuable assets – their staff.

Around 150,000 employees every year are absent from work for more than seven days following workplace accidents.

Personal Accident (PA) insurance pays out when an employee is killed or injured in an accident. Employers can choose to use the lump sum to recruit a temporary or permanent replacement, or give all or some of the money to the injured employee or their family.

With more businesses sending employees overseas as they expand into new markets, there is also a growing need for Business Travel (BT) insurance, which can reimburse a company for the costs involved in repatriation, cancelling/postponing a trip and overseas medical expenses.

PA and BT insurance can be vital in helping small businesses survive turbulent periods in which key employees are absent. However, because it is an optional cover, unlike employers’ liability insurance, not every company has it.

Directors’ and Officers’ insurance

Many smaller businesses believe D&O is only for larger corporations, or that it is unnecessary because their directors are covered by their limited status. However, this is not the case.

Many SME customers do not realise that the individual savings of their directors and officers, as well as their pension pots – and even their homes – could be at stake if a claim is made against them individually for their actions at work.

D&O has become a more attractive cover for brokers to sell in recent years due to the simplification of the underwriting process – see our 5 objections to D&O article for more details.

Commercial motor polices

Small business owners with only one or two vehicles often take some convincing that they need a commercial motor policy. If they were involved in an accident while doing something as innocuous as driving to the nearest post box to send a work-related letter, they may not be covered under their personal car insurance policy.

While employees can add business use to their personal motor policies, commercial motor policies are specifically tailored to meet business needs. For example our Commercial Vehicle policies can provide like-for-like courtesy vehicles, so if a tradesman’s van was stolen, a replacement would be provided that was large enough to carry their tools.

Professional Indemnity

In today’s increasingly litigious society, Professional Indemnity (PI) cover should be considered essential for anybody whose work includes offering knowledge, skills or advice.

PI protects customers against claims for financial loss arising out of negligent advice, designs, or specifications, given in the course of their business.

One point worth making to customers is that PI claims are not just expensive; they are also extremely complex. The time and effort it takes to defend a PI claim could divert a small business owner’s attention away from the running of their business.

How our SME proposition can create cross-selling opportunities

Cross-selling opportunities are dramatically improved by having all the covers your customers need in one place, and available through an easy-to-use e-trading platform.

The value-added services in our SME proposition can also help you when discussing with your customers why they might need additional lines of cover. For example, our Virtual Consulting tool allows brokers to highlight, at the click of a button, the most common causes of loss in their customers’ industry sectors.

To find out more about our SME proposition, and the enhancements we’ve made to ZTrade, log in to ZTrade or speak to your usual contact.

Image © Getty

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