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Oct 05
Environmental Insurance Offers Opportunity for Organic Growth

Every commercial insurance agency has an untapped organic growth opportunity with its current customers in a line of insurance where 95% of the accounts that need the coverage are needlessly uninsured today. Half of the placements have material coverage flaws in the policies being sold to them within the 5% of commercial insurance clients that have the needed coverage in place. Engaging in a proven sales strategy on prospects in this line of business can be expected to generate an 80% closing rate on first-time buyers of the coverage and 90% retention rates on renewals. Every agency has many potential buyers in-house and hundreds of prospects in their current marketing range. Sound good? It should, because numbers like that are only achieved in rare circumstances.

Just what is the mystery line of insurance that is capable of producing numbers like that? It is environmental insurance on selected classes of business.

And who is hitting closing ratios of 80% on new business first-time buyers?  ARMR Network, LLC does when our retail insurance agents utilize our time-proven inverted new business sales strategy and the purpose-built best in class environmental insurance products available through Big “I" Markets.

As a benchmark, the environmental insurance potential in the current account base of an agency is 10% of the General Liability insurance book.

To gauge the new business opportunities in the agency, which would be the best prospect to sell an environmental insurance policy to?

  1. A sanitary landfill operation
  2. A chemical company
  3. A hotel

Sanitary landfills and chemical companies certainly have environmental loss exposures. But all sanitary landfills and chemical companies that want environmental insurance already have environmental insurance in place.  To win on a new piece of business, you will need to get the incumbent agent fired for you to be hired. That is hard when renewal rates to incumbents are usually in the 90% range. While that situation is no different than any other new business opportunity in the agency, it is avoidable in environmental insurance if the right target prospect is identified.

A hotel is by far the more desirable new business prospect for most agencies. Consider:

  1. The hotel needs insurance for biohazards risks like mold and bacteria.
  2. There is an excellent chance the account is needlessly and ignorantly uninsured today for biohazard risks.
  3. Every hotel owner has heard of Legionnaires Disease, which can be fatal and produce a wrongful death claim.
  4. Very few hotel owners are aware that the Mold or Bacteria exclusions and sublimits commonly found in P&C policies today apply to legionnaires disease.

This list applies equally to all commercial buildings with the exception of the knowledge on Legionnaires' disease. A clean commercial property owner that is informed of a potentially expensive loss exposure that you have an affordable coverage solution for makes an excellent prospect for new business. 

Big “I" Markets offers purpose-built, best-in-class environmental insurance products for commercial properties, fire and water restoration contractors, and farms. All of those classes of business are woefully underserved today. For information on those products or how the ARMR inverted new business sales process can help the agency with organic growth, don't hesitate to contact ARMR at 877-735-0800 or email

​127 South Peyton Street
Alexandria VA 22314
​phone: 800.221.7917
fax: 703.683.7556

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