While consumers often confuse insurance and surety bonds, agents understand that these products are very different, and each requires an agent with unique skills and experience to secure the best prices. As an insurance agent, it can seem counterintuitive to send your insurance clients elsewhere when they need help securing a surety bond, but you might be surprised to learn that referring your clients to a surety bond specialist can be good for business!
When Referring Your Client Prevents Them From Leaving
Successful insurance agents rely on repeat custom to build a successful business, that’s why it can seem like the right choice to help your clients secure a surety bond even if this isn’t your area of expertise. So if you’re faced with the choice of referring a client to another agent or trying to find them a bond, which option is best? The simple answer is, it depends! However, there are some basic questions you can ask yourself to help you make the best decision for both your client and your business:
Will your client go elsewhere if you fail to find them an affordable bond?
The application process for a surety bond can be much different from an insurance application. Inexperienced agents face an increased chance of the surety declining their client’s application. If an agent fails to secure an affordable bond for their client, they risk losing their business to another agent who can provide both bonding and insurance services. Are you at risk of losing your client if you don’t secure their bond?
Will the commission be worth it?
When you’re working with the same types of applications every day the process becomes second nature, and you quickly learn all of the intricacies that can help you secure the best policy for your client. So what happens if you take on a surety bond application when you’ve had little to no experience with these product lines before? It takes a long time. Look at the potential commission from the sale, would your time be better spent elsewhere?
Retaining Your Clients By Referring Them To A Specialist
If the answer to either of these questions is yes, then you should consider referring surety bond applications to a bonding agency. When an agent understands that a specialty agency can provide the best service for their client for a need outside of their expertise, such as surety bonds, they have the opportunity to build trust with their client by referring them to an agent who works exclusively with bonds. The additional, and perhaps most important bonus of referring their client to a surety bond specialist is that they eliminate the risk of their client finding an alternative agent who can provide the bond and will also seek to provide insurance services. Choosing to refer a client for specialty applications is a simple and effective method of retaining a client for the services you offer!
Viking Bond Service is a bonding agency that helps insurance agencies throughout the U.S. secure the right bond for their clients and does not offer insurance policies. If you’re an agent looking for a reliable and experienced bonding agency to help your clients secure a bond, we’d love to work with you!