Price vs. Coverage

By Kaydrie Rayle

You are a young agent just getting started and you finally get a big break. That big account you have been after has finally asked you for a quote because his premium has gone up 20%. You gather all the information you need and sit down to start quoting. In your mind you think, “I’m going to nail this in the head. I know this business like the back of my hand.” However, after reviewing his current policy you realize that he is not covered on some of the services his business provides. Now you have a dilemma. Do you try to quote apples to apples in order to get the account that you have wanted so badly and try and save him a few bucks? Or, do you quote him what you feel he needs to better protect him and his business?

So after much thought and talking it over with your fellow employees you decide to quote it both ways and present both options. You gather your quotes and head into your meeting. You are nervous because your quote comparing apples to apples did come out less. However, the quote that is giving him better coverage came out more. How are you going to convince this business owner who came to you for savings to spend more than what he was paying with your competitor down the street? That’s when it comes to you, do you want Price or do you want Coverage? And that is your presentation.

As you sit down you thank him for the opportunity and then lead into talking about your quotes. You present the first one which is providing savings, the one you know is not the right one for him. He is very impressed that you could save him that much money. Then you show the second quote and his jaw drops. He starts to get a little frustrated and angry that you are even showing him a premium that is higher than what he was paying. Then you explain to him that he wasn’t covered for a lot of services that his business does. As you break it down line by line, explaining if he would have a claim on the other policy vs this new policy how things could be different. He may have to sell his business just in order to cover claim expenses because his loss isn’t covered. They may even come after him personally. He finally says, “my other agent never told me that and I have been with him for 15 years.” ”Well” you respond, “did your other agent review your policy at every renewal?” You explain, as your new agent you will do annual reviews of the policy. Also, the company we write you in can send a loss prevention expert out to look things over and make any recommendations to better protect you and them in the event of a loss. Suddenly his frustration turns into gratitude. You may have not saved him premium but you did save him from possible future ruin. What kind of savings would you rather have? He thanks you for time and most importantly your honesty.

You go back to the office, applications signed. The applications for the policy you know is better suited for him and the future of his business. You finally nailed that big account that you have been after for years. You go back to the office knowing that you did the right thing by not just providing the apples to apples quote that he asked for. You went against the all mighty buck and decided to ask yourself, “does he want Price or does he want Coverage?”

Insurance will always be about price, but at what cost? Next time you quote ask yourself, “Am I quoting Price or am I quoting Coverage?”