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Cross-selling to businesses: a quick guide

At a glance

  • There are plenty of opportunities for cross-selling when arranging cover for small and medium-sized businesses
  • With 13 SME products available in one place on ZTrade, we are committed to making it as easy as possible for you to meet the full range of your customers’ needs
  • This quick guide discusses key questions that will get your customers thinking about where they may have gaps in cover – and help boost your chances of cross-selling

Cross-selling is particularly important for brokers when arranging cover for small and medium-sized businesses. However, cross-selling to SMEs presents a number of challenges and recognising where cross-selling opportunities exist is therefore essential.

Here, we present a quick guide to several lines of cover that provide potential cross-selling opportunities, and the questions you can ask your SME customers to establish if these covers would help them.

Personal accident insurance

Personal accident insurance can be vital in helping small businesses survive difficult periods in which a key employee is absent following an accident. The lump sum pay-out is commonly used to recruit a temporary or permanent replacement.

Injuries in the workplace accounted for 4.5 million lost working days in 2015/16 according to the Health and Safety Executive (HSE), although accident and injury rates vary significantly from sector to sector.

Business travel insurance

Business travel insurance, meanwhile, can reimburse a company for a wide range of travel-related costs, including repatriation, cancelling/postponing a trip and overseas medical expenses.

Our Personal Accident and Business Travel policies are available on our Shop, Pub and Restaurant, and Hair and Beauty SME products.

Key questions to ask your customers:

  • Do you know the latest HSE accident/injury rates for your industry sector?
  • What level of financial support would you expect to provide for an injured employee who is unable to work for an extended period?
  • What level of support would you expect to provide to help an injured employee return to work (e.g. physiotherapy, counselling, rehabilitation, prosthetic limbs)?
  • How much would it cost to repatriate an employee from each of the territories they might visit on business travel, or obtain medical treatment for them?

Professional indemnity insurance

Professional indemnity (PI) insurance should be considered essential for any business that offers knowledge, skills or advice as part of its service.

When discussing PI insurance with your SME customers, you should encourage them to consider both the variety and size of their potential PI exposures. These could range from a negligence claim for designing a product that is faulty or fails to meet specifications, to a claim for breach of confidentiality if sensitive or personal client data is disclosed to a third party without the client’s consent.

You can find out more about our PI cover by reading our Professional Indemnity Sales Aid.

Key questions to ask your customers:

  • Do you currently offer advice or provide an expert service, or are you likely to do so in the future?
  • Do you handle personal data relating to clients?
  • Do you handle any sensitive commercial data, e.g. financial accounts, architectural plans or drawings, or other intellectual property?
  • Are you required to hold professional indemnity insurance –either by clients, or by any professional body or association you belong to?

Directors’ and officers’ (D&O) insurance

With regulators increasingly scrutinising the actions of individuals when investigating allegations of wrongful acts, directors’ and officers’ insurance is an important cover for any size of business. And, with research suggesting around 70% of SMEs don’t have D&O cover, there are obvious cross-selling opportunities for brokers.

Our D&O policy for companies with turnover of up to £5m includes full cover for insured versus insured actions and for legal representation, and a range of optional covers including Pensions Trustee Liability and Employee Dishonesty.

Key questions to ask your customers:

  • If your business went into administration, who would creditors be most likely to make a claim against in order to recover any monies owed?
  • What personal assets might be at risk if a claim was made against you or your fellow directors and officers?
  • How would your business be affected if you were forced to spend time and money investigating and defending an allegation of wrongful conduct?

Terrorism insurance

The recent attack in Berlin was the latest reminder of the threat posed by terrorists, and with MI5 categorising the current threat of international terrorism in the UK as severe, terrorism insurance is a cover that might be worth discussing with your SME customers.

Terrorism insurance indemnifies losses resulting from damage to commercial property in Great Britain caused by acts of terrorism – something that is typically excluded in standard property policies.

Our terrorism insurance can be upsold as an additional cover on any SME product with property cover.

Key questions to ask your customers:

  • Would you be covered under your existing property insurance for losses to your property caused by acts of terrorism?
  • Is your business part of an industry sector considered at increased risk of a terrorist attack – e.g. retail, tourism or critical infrastructure?
  • Are any of your properties located near a potential target of a terrorist attack – e.g. a government building, a transport hub, a power station or a major tourist attraction?

How we’re making cross-selling simpler

Raising some of the questions above with your customers should help them to think about where they may be experiencing gaps in cover, and improve your chances of cross-selling additional lines.

We want to make it as straightforward as possible for you to meet all of your customers’ needs, which is why we now offer 13 SME products on ZTrade.

For more information, read our previous Insider article on How to cross-sell to small businesses or speak to your usual contact.

Image © Getty

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