You routinely protect your clients’ buildings, inventory, liability and employees, but are you protecting them from the risk of disability? If you’re not offering paycheck protection and/or business overhead expense or key man insurance, you’re not meeting all of their needs, and you’re leaving money on the table.
According to the Disability Management Sourcebook, severe disabilities have increased 400 percent over the past 25 years for people ages 17 to 44. Before age 65, one in seven people will become disabled for five years or more. For business owners whose daily operations are dependent on them, the financial impact of a lengthy disability could devastate their business and their life. So the need is there, and that’s an opportunity for you to educate your clients and prospects about making disability insurance a vital part of their financial planning, and to fill that need for them.
In fact, more and more P&C agencies are looking to broaden their portfolios. One of the biggest drivers of this trend is client expectations. The combination of the recession and the rising costs of employee benefits have heightened clients’ awareness of the importance of how benefit and paycheck protection programs are designed and administered.
Some mid-sized P&C agencies have responded by developing in-house life/health/disability departments, while other P&C agencies obtain the necessary benefits expertise by forming business relationships with specialized distributors, gaining instant expertise without reinventing the wheel. Life insurance agencies have long-used affiliate programs as an efficient way to add disability and long term care expertise to their product/service suites. Now, P&C agencies are adopting the same approach.
Offering paycheck protection products to your clients can also keep you out of legal hot water. Failing to inform your clients about their disability insurance, key man insurance or business overhead options could put you at risk for an errors and omission claim. After all, when disabled clients start losing everything, they’ll be looking for a scapegoat, and their financial planner or insurance agent are easy targets. Make sure you have proof that you offered a disability insurance quote and that the client signs a Waiver of Liability Form to protect your interests.
In this challenging economy, you need to constantly strive to provide your customers more options, better service, and a more complete solution to their insurance needs. Adding paycheck protection to your toolkit is a good way to offer them even greater peace of mind, while adding a new revenue stream to grow your bottom line.
Brokers: Want to learn more about how to provide a disability insurance quote to your P&C business owner clients? Click here to download our free business owners report, or sign up for our next Business Overhead Expense Webinar!