Agency Owners often dream of expansion. For many, that means taking the leap from personal lines to commercial lines. It’s an exciting shift but one that requires careful navigation. Transitioning isn’t just about selling larger policies—it’s about strategy, building strong relationships, and dedicating time to understanding the complexities of commercial policies.
Many independent agents begin with personal lines because they are straightforward and traditionally simpler in application. You’re insuring homes, and cars—things people need covered, often with standard policies. But over time, you start noticing opportunities to serve local businesses. Perhaps the client whose car you insure owns a thriving bakery, or your neighbor with homeowners operates a landscaping company. These relationships can open doors to commercial insurance, but success requires thoughtful preparation.
So, where should you begin? The first piece of advice— start small. While the allure of large commercial accounts is tempting, focusing on small businesses provides a manageable way to build expertise and gain confidence. Once you’ve developed a strong foundation, shift your focus to specialization by concentrating on one or two industries or risk classes that align with your expertise and interests. Deep knowledge in these areas will help you stand out to both clients and carriers, boosting your credibility during prospect meetings and helping you avoid the common pitfall of ‘quoting and praying.’
Think hair salons, boutique shops, or local restaurants—the kind of businesses that can be insured with BOPs (Business Owner Policies). These prepackaged solutions function similarly to personal lines policies but with a commercial twist. Because of their size and simplicity, small businesses are often overlooked by larger brokers, creating significant opportunities for local independent agents to shine. By offering personalized service and building meaningful relationships, you can tap into this underserved market. Once you’re comfortable with simple risks, you’ll be well-prepared to take on more complex accounts. Remember, it’s about walking before you run.
Carriers offering small commercial products value agents who understand their offerings and consistently write business (a focus that also extends to large commercial products when you’re ready to take that next step). As an agency owner, building strong connections with marketing representatives and underwriters positions you and your agency as a trusted, and potentially preferred, partner. However, this trust is earned by focusing your efforts on understanding their appetites and classes of business.
Fortunately, the industry offers plenty of resources to support your growth. Training programs, like those available through SIA of NC and SIAA, can help you excel in commercial lines and make the transition smoother. Take advantage of these tools and invest in your education. Success in commercial insurance isn’t about luck but preparation and persistence.