What to Expect from Your Roofing Insurance Agent and Agency

June 26, 2024 at 10:45 AM

Roofing contractors often view their business insurance as a necessary evil, but those who actively collaborate with their insurance agent understand that having the right insurance partner is crucial for their company's future success. I recommend considering the insurance agent as a vital member of the company's board of directors, guiding the business alongside the accountant, attorney, and financial planner. It's important to differentiate between types of insurance agents and understand the distinction between captive agents (representing one company) and independent agents (representing multiple companies). While both agent types have their advantages, most roofing companies opt for independent agents due to their wider range of insurance options for clients, especially when it comes to coverage for unexpected roof damage and necessary repairs.

It is also important to understand the role of the agent and the agency. Every insurance agent will either be an employee or a contractor of an insurance agency. Therefore, the insurance agency is the entity that is responsible for obtaining the insurance company relationships and developing resources for the agents to utilize with their clients. Most insurance agencies rely on their insurance companies to provide specific risk management help for their clients instead of developing services internally. 

With all of that said, what should a roofing expect from their insurance partner? There are five areas of knowledge that your insurance agent and agency should excel at and make no mistake about it, number 3 is the most important!

Five Key Things You Should Look for in Your Roofing Insurance Agent and Agency

1. Insurance – First and foremost, your insurance agent needs to have a great understanding of the insurance coverages important to the roofing industry. This knowledge enables them to be more than just a salesperson and allows them to serve your company as a true trusted advisor to guide you through decisions.
2. Claims – Your agent should have a good understanding of the claims process as well as the most common type of claims within the roofing industry. They are your advocate during the claim process to guide you through the challenging time to ensure you get a prompt and fair resolution from the insurance company.
3. Risk Management – This is the most important one! The amount of premium you pay for your insurance coverage is directly related to the number and severity of your past insurance claims. In order to help you control your insurance cost in the long run and help you build a profitable business today, your agent MUST bring a risk management focus to your insurance program to help you do everything you can to eliminate or reduce injuries and accidents. They should have resources and a proven process established for you to implement easily and effectively.
4. Roofing Industry – The more your agent knows about the roofing industry, the better they will be able to serve your company. Your agent should understand the unique service operations and equipment that roofing contractors across the country use to build an effective risk management-focused insurance program. You shouldn’t have to teach your agent about the roofing industry every time you call to add a piece of equipment or need an insurance certificate. Bonus Points go to the agents who are actually involved in the roofing industry, volunteering with associations, presenting at conferences, and sponsoring events.
5. General Business – Lastly, your insurance agent should have some degree of general business knowledge. They should understand the basics of running a business and how you, as the business owner, get pulled in a million directions daily. This understanding of business acumen will help your agent craft the best risk management-based insurance solutions for your organization that will minimize downtime and disruption caused by injuries and accidents.

Tips for parting with insurance agents and agencies

Unfortunately, not all insurance agents and agencies will be proficient in the five areas of knowledge above and you will have to make a switch to better your company. If you are looking to switch, here are a few simple points to help you transition from your current agent seamlessly.

– Communicate Clearly – After deciding to make the switch, clearly and directly communicate your intentions to your current agent or agency. Anticipate their efforts to regain your business by promising improved service, offering extra resources, or appealing to your emotions with personal anecdotes or past successful experiences.

– Three Reasons – Be ready to explain your reasoning by using the points above to create at least three reasons why you need to make this change for the betterment of your business.

When considering transitioning your insurance program to a new agency, it's crucial to anticipate objections from your current insurance agent. They are likely to have counterarguments prepared to dissuade you from making the switch. Take the time to proactively think about their potential objections and formulate responses accordingly. Be prepared for instances where they may resort to personal tactics in an effort to retain your business. While this can be uncomfortable, it underscores the importance of recognizing when agents prioritize their interests over those of your company.

Establishing a solid relationship with your insurance provider is key as it facilitates smoother communication channels, especially during critical times such as claim handling. Utilizing methods like fax or email can streamline the process and ensure efficient handling of any issues that may arise.

In addition, exploring the option of using digital platforms for communication, like dedicated client portals or mobile apps provided by insurance agencies, can further enhance transparency and accessibility when managing your insurance policies and claims. Embracing technology in these interactions can lead to greater efficiency and convenience for all parties involved.

–      Remember Why You Need to Change – This has already been stated above, but it is so important that it needs to be stated again. Never let your current agent distract you with their attempt to keep you as a client when they have been letting you and your business down in the important areas that you need your insurance partner to be proficient in.

Insurance coverages alone can be a tricky subject to deal with as a business owner, so now you know how the right insurance agent and agency can help eliminate this as a potential threat to your business.