Gyom workbook by Ted Baker

GROW YOUR OWN MONEY FINDING THE MONEY IN YOUR OWN BACKYARD

A Course For Independent Insurance Agencies Created By

No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording, or by any information storage or retrieval system, except as may be expressly permitted by the publisher in writing or within this publication.

Ingenuity 110 Victoria Manor Loop #207 Lakeland, Fl. 33805 214-957-2468 ted@agencyingenuity.com www.agencyingenuity.com

YOUR COACH Ted Baker is Founder & President of Ingenuity located in Lakeland Fl. He has invested over 30 years in the insurance industry.

Ted has helped over 2,500 independent agencies and brokerages throughout North America. His passion for this industry and what is sometimes considered “outside the box” concepts and presentation style, has made Ted a favorite speaker for many throughout our industry. Ted has been a featured speaker for numerous AMS, Applied Systems and Instar User Groups. He has also been a frequent guest speaker for Marsh Berry, Quantum Club, ETFile, and ARM International, along with numerous other insurance industry events.

His passion is to return the insurance industry to it’s focus on protection rather than processing. Over the past 30 years so much processing work has been put on agents that it is become the primary focus in many cases. By returning to a protection mindset everyone benefits; the agency, the staff and the customer.

This course is the compilation of three decades of his experience in this industry and based on his work with all types and sizes of agencies. Ted encourages you to put aside the past and it’s paradigms and embrace the amazing future that can be yours through this unique and fresh approach to growing your agency.

CONTENTS Introduction

Intri

Trainer’s Guide How To Teach This Course……………………………………………………… What Staff Needs Most ...…..…………………………………………………… Seven Steps To Reduce Negativity…………………………………………….. Reading List……………………………………………………………………….

1 4 7 8

Unified Culture What Is An Agency Culture ………...…………………………………………… Your Current Culture ..…………………………………………………………... What Needs To Change…………………………………………………………. Assignment …...………………………………………………………………….. Reading List ………………………………………………………………………

9 11 13 15 18

Rounding Out Accounts Introduction ………………………………………………………………………. Ask Personal Questions …………………..……………………………………. Tell A Unique Story ………………...….....……………………………………… Bring To A Point Of Decision ……………………………..……………………. Assignment ………………………………………………………………………. Reading Assignment …………………………………………………………….. Script - Home Pool ………………………………………………………………. Script - Teen Drivers …………………………...……………………………….. Script - Increase Auto Limits ……………...……………………………………. Script - Flood …………………………………………………………………….. Script - Pay Off Mortgage ……………………………...……………………….. Script - Identity Theft ……………………………………………………………. Script - Long Term Care ………………………………………………………… Script - Home Based Business ………………………………………………… Script - Scheduled Jewelry …………………………………………………….. Script - Business Income ………………………………………………………. Script - Valuable Papers ………………………………………………………… Script - Buy-Sell ………………………………………………………………….. Script - Updated Building Codes ……………………………………………….

19 21 22 24 26 27 28 31 33 36 38 40 42 44 46 48 50 52 54

CONTENTS Script - Business Personal Property >>>>……………………………………. Script - Pollution Spill ……………………………………………………………. Script - Key Man …………………………………………………………………. Script - EPLI ………………………………………………………………………

56 58 60 62

INTRODUCTION I started in this business in 1979 as a life insurance agent. Knowing absolutely nothing about this industry I had no choice but to listen to the people that brought me in and were my mentors. One of the first things that I learned was that the best way to build your insurance business was from within, not from the outside. I was taught the only people who responded to advertising were either uninsurable or flakes. In fact, I was not allowed to cold call for the first six months as an agent. What a difference between this and what many are taught on the Property & Casualty side of the business.

This makes a lot of sense when you think about other professionals, i.e. lawyers, doctors and accountants. How do they build their businesses? From within - expansion of existing business (rounding out accounts), referrals and retention.

After nearly 35 years in this business, I clearly understand the difference between the life side and the P&C side. However, there are certain truths that apply to both, such as the importance of the quality of an agencyâ&#x20AC;&#x2122;s book of business. I believe that every agency can increase the quality and the profitability of its business by applying the basic principles taught in this course. Why do I believe this? Itâ&#x20AC;&#x2122;s because I have seen them work time after time in agencies all across the U.S. and Canada and I am confident they will work in your agency as well. They will not only increase your profitability but they also make the job a lot more fun and rewarding. Wouldnâ&#x20AC;&#x2122;t it be nice to find a way to put some fun back into our great industry?

TRAINER’S GUIDE How To Teach This Course What Staff Needs Seven Steps To Reduce Negativity Reading List

How To Teach This Course This course is designed to be read by all members of your agency/ brokerage, not just your management team. One of the primary goals of the course is to build unity in your staff and this cannot be accomplished without

If you want your staff to get

their involvement. The Ebook version eliminates the need to print paper copies

behind this proc-

for distribution throughout your office.

ess and “buy-in” to

Ideally, we recommend that you set aside one hour every week for training. At this meeting you will discuss the course and work through the assign-

the process they

ments. Please have your staff read the relevant material prior to your training

need to see com-

sessions so that they are prepared. It is important to maintain continuity with your training sessions which

mitment from your

means holding to the same schedule every week and not varying times or days.

management

It’s easy to get caught up in the day-to-day crises, please but avoid this as much

team.

as possible. If you want your staff to get behind this process and “buy-in” to the process they need to see commitment from your management team. Holding to your schedule will show them how important you consider this course. Without consistency they will have a tendency to resist and find reasons to not follow the process. Their commitment is based on your commitment.

ASSIGNMENT This symbol lets you know that you have been given an assignment, which is typically for the entire office. When possible, gather everyone together into one location. If you have multiple offices consider using video conferencing to allow everyone to meet at one time. One of the goals for this course is to build unity in your office vision and culture. It is impossible to do this if you do not meet and make decisions as a team. IDEAS Throughout the course you will see this symbol. Here we will share ideas which have worked in other agencies/brokerages. In most cases we will include samples of the ideas. We encourage you to use these samples as a catalyst to become creative yourselves. Think of ways that you can personalize the ideas to your office. Cultivate an atmosphere where people are exited about sharing new ideas. The more that you can make the program your own the more your staff will embrace the ideas. HELPFUL TIPS We will also be sharing tips and testimonials from other agencies/brokerages who have been successful in using the techniques taught in the course.

When you see

this icon share the thoughts with everyone in your office and even create your own to add to the material. COMPONENTS There are four basic components to the course. They are the following: 1. Rounding Out Accounts 2. Referrals & Testimonials 3. Life Insurance 4. Tracking

ROUNDING OUT ACCOUNTS

NOTES

Nearly every agency/brokerage does a pretty good job rounding out accounts. However, in our course we want to take a fresh new look at a way to not only

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become more effective but to make this a consistent part of daily life in the agency. We also want to make it a part of the culture of everyone in the office that the only way to protect people is to make sure they are properly insured. The only way to do that is to talk to people and make sure their insurance plan meets their needs. It’s not about making more money, it’s about protecting people.

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REFERRALS & TESTIMONIALS

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Here, as with rounding out accounts, most people do a fairly good job. But

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imagine how much more effective you will be when everyone in your office is

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doing it every single day. The number of referrals and testimonials is a direct

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reflection of how people feel about you and the benefits they are receiving from

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you. The goal has to be moved from simply happy customers to satisfied cus-

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tomers. A happy customer will leave, a satisfied one will not.

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LIFE INSURANCE Now we get to something that many agencies do not focus on.

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This is a real

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shame because both you and the customer loses. Imagine if you could average

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ten or more policies per month? This alone would add more than $40,000 to

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your bottom line not to mention your increase in retention.

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TRACKING

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If you don’t play to game to win, then why keep score? Without tracking you

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will never reach your goals and see lasting change. We suggest that manage-

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ment meet with the staff and enter your statistics together. When they see the

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goals generated by your actual numbers it will be clear to them this process is realistic and achievable. If any of the goals see unrealistic simply adjust your statistics to modify the goals automatically.

What Staff Need Most We recently conducted a poll of staff who were invited to submit their ideas on

I feel like management

what they need most from their managers. Their responses are must reading for all managers. The following results represent top responses from over 300 contributions.

leaves us in the dark until the last minute on major decisions that affect our work.

COMMUNICATION Staff expressed a need for improved communication.

“I feel like management leaves us in the dark until the last minute on major decisions that affect our work”

“I need more information on what is required to do a good job.”

"I would like better communication about things like staff changes, new building, staff members being sick etc. Everything is a secret to the staff. At least this is how it seems Send out a blind Morale Survey several times a

CLEAR DIRECTION

year to get a pulse on

Staff expressed a need to understand agency goals, changes and growth. This

how your staff feel about

includes information on sales, annual revenue, agency profitability and accom-

your agency. See the

plishment of goals.

sample in the Appendix.

“I would like a clear vision, short term and long term. Let everyone participate in the actions needed to accomplish that vision.” “I need clear and timely decision-making.” “It seems like messages from management are sometimes not focused and come across in a muddled fashion”.

RECOGNITION

NOTES

Staff expressed a need to feel valued for who they are, and to be recognized for

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their accomplishments and contributions to the agency, including an on-going

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Reward & Recognition Plan.

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“Take time to learn what motivates your staff, then set goals and incentives that will make them feel inspired to succeed.”

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“I would appreciate more recognition of successes rather than mistakes.”

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"It would be nice to hear praise for a job well done."

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CONSISTENCY—FOLLOW THROUGH

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Staff expressed a need for established ways of doing business that apply equally to everyone in the agency.

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“I would like to see Owners and Producers following the same guidelines as

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the staff.”

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"Sales staff seems to make up their own rules as they go, frustrating some

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staff who expect their compliance with established procedures."

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"Internal training on new/existing applications was very slow due to turn-

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over."

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FAIR COMPENSATION PLAN

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Staff expressed a need for a defined, written and fair compensation plan.

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“I would like to see the compensation plan in writing, so that everyone un-

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derstands exactly what is expected and what is possible.”

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“A fair Producer compensation plan in writing which allows for Producer

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success and longevity and contributes to the financial growth of the agency.” “It’s too bad that an agency spends so much time and money to hire a qualified CSR and then fails to recognize or compensate them properly.”

Approach your staff in a manner that ex-

ENCOURAGEMEN TO SHARE IDEAS Staff expressed a need for management to be willing to listen to their suggestions, and encourage the open exchange of ideas – good ideas and not-so-good ideas.

hibits your confidence in them which will en-

“Approach your staff in a manner that exhibits your confidence in them, which will go far to enhance your staff's confidence in themselves. Respect your staff and the time they spend to grow your business, commit yourself

hance their confi-

to your own goals and let your staff see you succeed. Your staff and manag-

dence in them-

ers need to feel as though you are ready to roll up your sleeves and work

selves.

right by their side in a supportive nature.”

“Encourage new ideas and create an environment for your staff that will foster their own desire to succeed... success breeds success. “

COMPASSION Staff expressed a need for compassionate leadership from their managers. "Compassion when someone makes a mistake. Take the time to find out why there was a mistake and help build an understanding of how the mistake could be avoided. In other words, be patient and use mistakes as a learning and growth tool."

Provide opportunities for people to make decisions about and control and/or influence their own job. The single most frequent cause of negativity I encounter in workplaces is traceable to a manager or the organization making a decision about a person’s work without her input. Almost any decision that excludes the input of the person doing the work is perceived as negative.

Seven Steps To Reduce Negativity Make opportunities available for people to express their opinion about workplace policies and procedures.

NOTES _________________________ _________________________

Recognize the impact of changes in such areas as work hours, pay, benefits, assignment of overtime hours, comp pay, dress codes, office location, job requirements, and working conditions. These factors are closest to the mind, heart and physical presence of each individual. Changes to these can cause

_________________________ _________________________ _________________________ _________________________

serious negative responses. Provide timely, proactive responses to questions

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and concerns.

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Treat people as adults with fairness and consistency.

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Develop and publicize workplace policies and procedures that organize work

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effectively. Apply them consistently. As an example, each employee has the

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opportunity to apply for leave time. In granting his request, apply the same

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factors to his application as you would to any other individualâ&#x20AC;&#x2122;s.

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Do not create â&#x20AC;&#x153;rulesâ&#x20AC;? for all employees, when just a few people are violating the norms.

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You want to minimize the number of rules directing the behavior of adult peo-

_________________________

ple at work.

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Provide appropriate leadership and a strategic framework, including mission,

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vision, values, and goals.

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People want to feel as if they are part of something bigger than themselves. If they understand the direction, and their part in making the desired outcomes happen, they can effectively contribute more. Provide appropriate rewards and recognition so people feel their contribution is valued.

Each person wants to have the

Treat people as adults; they will usually live up to your expectations, and their own.

same information

Help people feel like members of the in-crowd; each person wants to have

as quickly as eve-

the same information as quickly as everyone else. Provide the context for

ryone else.

decisions, and communicate effectively and constantly. If several avenues or directions are under consideration, communicate all that you know, as soon as you know . Reserve the right to change your mind later, without consequence, when additional factors affect the direction of ultimate decisions. Afford people the opportunity to grow and develop. Training, perceived opportunities for promotions, lateral moves for development, and cross-training are visible signs of an organizationâ&#x20AC;&#x2122;s commitment to staff.

Reading List The Starbucks Experience by Joseph Mitchell Blue Ocean Strategy by W. Chan Kim .The Strangest Secret Earl Nightingale - Full Version on YouTube

UNIFIED CULTURE What Is An Agency Culture Your Current Culture What Needs To Change Assignment Reading List

What Is An Agency Culture This course is based on two concepts. First, your agency has a group culture and secondly that it is passionate about its value. You can teach some-

One or two

one a script, but if you want your customers and prospects to believe you have

people being pas-

value you must believe it and be passionate about it yourself first. No script or

sionate cannot

system can replace personal belief or passion. Passion comes from many areas, but one of the most important is cul-

compare to an

ture. There is power in numbers. One or two people being passionate cannot

entire organization

compare to an entire organization showing passion. It is infectious.

showing passion.

Letâ&#x20AC;&#x2122;s talk first about some basic steps in achieving a unified culture starting with goals. According to popular author and speaker Zig Ziglar, a goal must be specific and measurable. To simply say that we want a unified culture isnâ&#x20AC;&#x2122;t enough. You must define your goals. When your agency buys into a set of goals, it takes your agency to a new level. Keep goals in the foreground at all times. Be creative in how you communicate your goals clearly to the people in your office as well as your prospects and your customers.

It is infectious.

You must also encourage ownership. Your staff must know that goals are a “win” for them. Help them to feel like pivotal contributors and that they truly influence the process of reaching your goals. Put a sign in your reception area such as “Protecting Your Stuff” or at a desk that says “Protection Specialist At Work”.

Gareth Morgan is a best-selling author, speaker and consultant on managing change.

His books include Images of Organization, Riding the Waves of

Change, and Imagination: New ways of seeing, organizing, and managing. He describes culture as "an active living phenomenon through which people jointly create and recreate the worlds in which they live."

Culture doesn’t happen by

accident. An agency must purposefully determine the world they want to live in. Why does this not happen more often? I think that one reason is that we don’t ask ourselves challenging questions, or we are simply not specific enough with our questions. This leads us to get what we may have asked for but not what we were necessarily looking for. If you find yourself saying “Well that’s what I really meant.” then maybe that should have been stated as your objective instead. The process of deciding on, and creating culture, takes time, In our Solutions program we deal extensively with culture and vision statements For now, think about a culture that is likely to attract the people you need to achieve your immediate goals relating to new production. This works best if you can engage everyone in the organization and if everyone feels committed to the project and shares the same vision of how they want to work. For the purpose of this course we will focus on two key components of culture. The first is protection. We are in the business to protect people which brings with it a moral responsibility to ask what we call “protection questions”. You can give the greatest “service” in town but if the customer isn’t adequately protected then it’s worthless. The second is the idea that the majority of the agency’s production goals will be met through current customers and referrals.

Keep this in mind. If you establish procedures and rules for rounding out

NOTES

accounts and getting referrals without building it into your culture you can surely

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count on resistance. Why? It’s simply one more thing to do. But with a culture

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of protection everyone recognizes the responsibility to make sure the customer

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has what they need. It’s no longer about us, it’s about the customer.

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Your Current Culture

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You need to characterize the existing culture - after all, you don't know

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which way to go if you don't know where you are. Earl Nightingale says, “We

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become what we think about most of the time.” What do people in your agency

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think about most of the time? Is it processing and problems or is it protecting

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people? Is it giving quotes to people who randomly call or talking to customers

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and referrals?

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It is also good to find out what frustrates people, what makes them feel good, what helps them get their job done and what keeps them coming back. The only way to get this information is to ask as many people as possible to find out how they see your agency. Use the area below to record the comments and impressions you discover.

INTERNAL CUSTOMERS (Your Staff)

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_______________________________________________________________

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We are al-

EXTERNAL CUSTOMERS (Policy Holders)

ways comfortable

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with crutches. We

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must put the staff

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in the position to

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not rely on old

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and existing ways

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of doing business and take away the crutches.

We are always comfortable with crutches. For example, we were one of the first to teach electronic filing in our industry. Often times we found that agencies were keeping both paper and electronic file because they didn’t trust the electronic records. How did we help agencies past this? We told them to get rid of the paper files. In other words, get rid of their crutches. As long as the paper files were there, they would never fully trust the electronic one.

An Ohio agency surprises their staff periodically with “Ice Cream Day”. They will, totally unannounced, shut the agency down for 30-45 minutes and take their staff down the street for ice cream.

The same is true in marketing. If the agency buys into the culture that 100% of your production goals will be met through existing customers it takes away the crutches. If existing internal marketing is simply an option then other things can, and will, get in the way. We can always find ways to not have time. However, if there is no option then we must find new ways of working and ways to save time otherwise production goals will not be met. Once you know where you are, and where you want to go, you can start planning the changes to get you from point A to point B. However you decide to do it, you should identify all the negative aspects of your current culture that you want to stamp out, the positive parts of the current culture that you want to preserve and nurture, and the aspects of your visionary culture that you need to create. Write these down in detail so that you will have a road map of the changes you need to make to create your new culture.

What Needs To Change Once you know where you are, and where you want to go, you can start

NOTES

planning the changes to get you from point A to point B. However you decide

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to do it, you should identify all the negative aspects of your current culture that

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you want to stamp out, the positive parts of the current culture that you want

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to preserve and nurture, and the aspects of your visionary culture that you need

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to create. Write these down in detail so that you will have a road map of the

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changes you need to make to create your new culture.

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NEGATIVE ASPECTS

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POSITIVE ASPECTS

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______________________________________________________________ ______________________________________________________________ ______________________________________________________________

It's all very well to imagine a new culture, and to prioritize the needed

Approach

changes, but how do you actually get a culture to change? For each cultural

your staff in a

change that you want to make, try to identify the top five organizational traits

manner that ex-

that prevent you from making the change and start trying to eliminate them. And at the same time, identify the five most important traits that would encourage

hibits your confi-

the change and start promoting those traits. You're trying to establish both a push

dence in them

and a pull to get you to the new culture: the push is to stamp out negative prac-

which will en-

tices and the pull is to start rewarding positive practices that get the new behav-

hance their confi-

ior started

dence in them-

TOP 5 TRAITS PREVENTING CHANGE

selves. ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________

EXTERTOP 5 TRAITS ENCOURAGING CHANGE

_________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________

As management leads staff into a unified culture there are several rules to follow as you create and talk about your culture. TALK ABOUT IT IN PRESENT TENSE

NOTES _________________________ _________________________ _________________________

Describe your vision statement in present tense as if you were reporting

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what you actually see, hear, think and feel, as if your ideal outcome has already

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happened. You want to create a mental picture charged with emotion that can

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serve to energize and inspire you and your team.

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MAKE IT EMOTIONAL

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Describe how you will feel when the outcome is realized, including an

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emotional payoff infusing your culture with passion and making it even more compelling, inspiring, and energizing.

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ADD SENSORY DETAILS Describe the scenes, colors, sounds, and shapes. Describe who is there

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and what everyone is doing. Remember, you are actually seeing it happen in your mind. You don’t “see” in abstracts, you “see” details, hear sounds, feel emotions.

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FOCUS ON PEOPLE NOT THE AGENCY Focus on people not the company. Focus on how they will feel and react. Your Mission Statement will address your business goals. We are dealing now with culture which is the world you live in.

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Before beginning the assignment, make sure that everyone in your agency has studied the material on culture and that management has answered the questions on the proceeding pages. We also suggest that your staff has had an opportunity to discuss it within their own departments.

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How valuable is a shared culture?

People will typically be more

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enthusiastic

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where they feel a

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sense of belong-

How do you feel about our existing culture?

ing and see them-

_________________________________________________________________

selves as part of a community than

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they will in a work-

_________________________________________________________________

place in which

Do you feel that we have a common culture or individual cultures?

each person is left

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to his own de-

_________________________________________________________________

vices. _________________________________________________________________ What are we passionate about? _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ How do we show our passion? _________________________________________________________________ _________________________________________________________________ _________________________________________________________________

Do we all agree that planning on sales goals being met through existing customers

NOTES

should be a part of our culture?

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_________________________________________________________________

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Do we all agree that we need to build a greater focus on protection into our culture? _________________________________________________________________ _________________________________________________________________

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_________________________________________________________________

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What can we do to display our culture?

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 Begin the day with a joint meeting

 Remind ourselves before each call

 Put signs in the office

 Ask customers what they see

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 Include our culture on our website

 Include our culture in proposals

 Newspaper

 Ask each other

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Comments

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_________________________________________________________________ _________________________________________________________________

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Begin each day with a group meeting reminding everyone of the culture. Before you pick up the phone to answer a call remind yourself that the most important thing you can to is to protect the customer instead of the most important thing is to provide good customer service.

Reading List Good To Great by Jim Collins Creating Effecting Mission And Vision Statements by Emil Angelica

ROUNDING OUT ACCOUNTS Introduction Asking Personal Questions Telling A Unique Story Bringing To A Point Of Decision Assignment

Introduction I believe that every agency acknowledges the need and importance of

NOTES

rounding out accounts. They realize that it increases commission dollars and

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it improves retention. While true statements, both of these focus on the bene-

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fits to the agency. In our effort to change culture we must put our primary

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focus on the customer. When we do this, the benefit to the agency will fol-

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low.

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Let’s take a look at two very important principles as we look at account rounding.

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IT’S NOT ABOUT SELLING

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For years agencies have tried to get their staff to sell more. In many

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cases this has been met with resistance. Why is this the case? One of the

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main reasons is fear of rejection. In a study of personality types we see that the majority of service staff fall under the category of “Amiable”. This personality type does not like confrontation and definitely does not like to be in a position where they are asked to sell. So what is the answer?

IT’S ALL ABOUT PROTECTION

As you build on your agency’s protection culture

In order to properly protect people we must ask questions about missing coverage and potential gaps in coverage. It’s not about the agency, it’s about their protection. As you build on your agency’s protection culture you will realize more and more that we aren’t selling a typical product or service. We

you will realize

literally hold people’s lives in our hands. By not asking someone about their

more and more

insurance we are essentially making a decision for them. We are saying that we

that we aren’t

are more concerned about ourselves, our comfort level and our work load than

selling a typical

their well-being. However if we do ask and they choose not to protect themselves then we have

product or ser-

simply done our jobs. We can’t lose either way. The only way we can lose is by

vice.

not asking. We eliminate one of the main reasons that people don’t ask fear of rejection.

Let’s look at three steps in more effectively rounding out accounts. Instead of giving people scripts to follow or simply asking them to sell more, this course teaches three simple steps to more effectively round out accounts.

1. Ask Personal Questions 2. Tell A Unique Story 3. Bring People To A Point Of Decision

In this chapter we will go over each of these steps and then you will follow assignments to practice what you have learned. Throughout the process always keep in mind that the ultimate goal is to make sure the customer is protected. Selling policies and additional coverage is simply the by-product.

Ask Personal Questions People say all the time that they already get on a personal level with

NOTES

their customers and prospects. And I believe this is true. However, in many

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cases they do it without a specific business purpose.

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In business it is important to have a specific purpose for everything that

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we do. Although building relationships without a specific business purpose can

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be beneficial, it can also end up taking a tremendous amount of time with no

_________________________

measurable results. In these cases being personal ends up costing the agency

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money.

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In this course we want to teach you three specific purposes for asking personal questions:

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BUILD PERSONAL RELATIONSHIPS

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In spite of what we hear about our fast paced society, we are still a relation-

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ship-based business. People want a great price but they crave value, and in

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many cases value comes from our relationships.

_________________________ _________________________

The more you can be on a personal level with people the more they will want to do business with you and the more they will want to refer people to you. You don’t want to simply be a provider of products or services, you want to be someone that is involved in your customer’s life and business. This will not only increase retention, it will affect how staff feel about the agency.

_________________________ _________________________ _________________________ _________________________ _________________________ _________________________ _________________________

TAP INTO MEMORIES We are more effective when we use facts straight out of a person’s life rather than industry statistics. By getting to know someone better we stand a greater chance they will understand their problems better and want to solve them.

_________________________ _________________________

TAP INTO EMOTIONS

You need to tap into peopleâ&#x20AC;&#x2122;s emotions if you want the opportunity to protect

By remembering their actual experience a person is more likely to feel some type of emotion, which is a powerful motivator. We are emotional creatures and most decisions are based more on emotion than on fact.

Tell A Unique Story

them. As we discussed earlier, people typically buy for emotional reasons. No matter how great your product or customer service is, apathetic consumers will simply dismiss it. You need to tap into their emotions if you want the opportunity to protect them. By tapping into the pleasure and pain triggers in your customer, you will be catching their attention, and encouraging them to act (either to rid themselves of the pain, or to retain feelings of pleasure.) Here are some tips for injecting pain and pleasure into your protection message:

TELL STORIES People immediately connect with stories. If your story relates to an experience they have had, they will immediately be reminded of the feelings they are fighting to avoid, or the feelings they'd love to feel again. This is why we learned to ask personal questions. So we can tell personal stories.

MAKE YOUR PROSPECT OR CUSTOMER IMAGINE The mind is a powerful tool. Asking someone to visualize sets a stage for you to present painful/pleasurable situations. Tap into past experiences, or create hypothetical ones based on the information you learned. When it comes to emotion, the personâ&#x20AC;&#x2122;s brain will not make a distinction between fact and fiction.

NOTES

USE THE RIGHT WORDS Make your message vibrant by using active verbs. For example: Jane runs in-

_________________________

stead of Jane is running. Also, use words associated with pleasure (babies, soft,

_________________________

relaxing etc.) or pain (dentist, suffering, trauma).

_________________________ _________________________

Once you draw out the pain or pleasure, let your customer revel in it. I

_________________________

realize that it sounds cold and heartless, but don't be too quick to move past the

_________________________

emotion. It's the emotion that moves people to action. If you can successfully

_________________________

incorporate emotional stimulation in your protection messages, you will be

_________________________

transporting the person to a position where they will be able to make a more

_________________________

informed decision about protecting their life.

_________________________

As much as we like to think we're rational and logical, people buy prod-

_________________________

ucts and services because the marketing appeals to emotions. Like pain. You

_________________________

need to find out what problems are so excruciatingly painful that your custom-

_________________________

ers are forced to take immediate action. What causes their teeth to ache and

_________________________

throb? What wakes them up in the middle of the night? In this step, we want to use the personal information to make sure that the customer clearly understands their situation. We are not going to manufacture pain nor or we going to use it to manipulate someone to buy simply because we want their money. We are doing it so that they can truly make an in-

_________________________ _________________________ _________________________ _________________________ _________________________ _________________________

formed decision. A pretty clear-cut example would be criminal defense services provided

_________________________ _________________________

by an attorney. Every client wants to be assured that their attorney is capable and competent, but the client is less interested that his attorney has 30-years of experience instead of 25, or that he can recite legal code backwards and forwards. The clientâ&#x20AC;&#x2122;s pain is jail time, a ruined career, the stigma of conviction, a broken family and possible financial ruin. Those are real, palpable pains. People donâ&#x20AC;&#x2122;t care nearly as much about your years in business, the carriers you represent or your great customer service.

What they really want to

know is whether you can ease their pain. How can that question be answered if the pain has not been identified?

_________________________ _________________________ _________________________ _________________________ _________________________

Finally is the example of a dentist. When pulling a bad tooth the dentist

By getting personal and introducing an element of pain person is at the point

will more than likely cause pain, but they would never harm the patient. There is a huge difference between pain and harm. Pain can motivate us to do what we need to do.

Bring To A Point Of Decision

where they can truly evaluate

The hardest part of a sale is the close. How do you assist someone to buy from you and not come across as pushy or annoying?

their situation and

What you will learn here is a technique that is built on the preceding

make an

steps. By getting personal and introducing an element of pain a customer (or

informed deci-

prospect) is at the point where they can truly evaluate their situation and make an

sion.

informed decision. One of the most powerful concepts that you can learn is that we are in the business to sell money. At various times in a person’s life, they will need money. It could be retirement, a fire or accident or even a lawsuit. The customer has two choices. They can either use their money or they can use yours. Their money costs them 100 cents on the dollar, your dollars cost them about 25 cents. You sell discounted money. The only question is which money they will use and it is your role to help them make the decision that is best for them. To bring someone to a point of decision is actually a very caring and respectful approach. You aren’t trying to talk them into something. You aren’t putting any pressure on them to buy something. Any you can’t be rejected if they say no because your job isn’t to get them to say yes, its to make an informed decision. This is a huge relief for most people because fear of rejection is very uncomfortable. The last thing you want is to either leave the customer in a state of confusion, uncertain of what to do or to make a decision based on a knee-jerk reaction.

RECOGNIZING SUCCESS

NOTES

You will know that you are successful when you get either a solid yes or no an-

_________________________

swer from the customer. If they are not prepared to make a firm decision right

_________________________

now you still have a firm answer - the answer is no. Assist your customer to

_________________________

realize they have made a decision by waiting. Confirm to them the potential

_________________________

outcome of their decision and move on, and certainly document your agency

_________________________

management system and try to get their signature on a waiver.

_________________________ _________________________

ASSUMNED CLOSE

_________________________

If the answer is yes then immediately move forward with the next step. This

_________________________

could be getting more information, such as scheduling jewelry, or begin com-

_________________________

pleting the necessary application. You do not need any further confirmation.

_________________________

In other words, do not say something such as “Is this what you want to do?” or

_________________________

“Did you want to add this to your policy?” or “Let me get you a quote to know

_________________________

how much it will increase premium.”

_________________________ _________________________

This can be very confusing to the person because you just got their confirmation. If for any reason they do not want to proceed I assure you they will stop you and ask. You are not being pushy by treating them with respect and listening to their wishes.

_________________________ _________________________ _________________________ _________________________ _________________________

If you bring up the issue of price it becomes an issue. If the customer brings it

_________________________ _________________________

up you are simply answering their question. Let them be the one to bring it up.

_________________________ _________________________ _________________________ _________________________ _________________________

Break your agency into small groups but not necessarily by department. Itâ&#x20AC;&#x2122;s good for people from different departments to have the opportunity to work together. The purpose here is not to learn scripts but to learn skills so donâ&#x20AC;&#x2122;t focus too much on lines of business. If you keep people within their comfort zones then they donâ&#x20AC;&#x2122;t have to think as much. If you let your personal lines staff learn from commercial lines scenarios they will learn the process much faster.

Using the examples on the following pages have your staff role play with one being the staff member and the other being the customer. Role playing is a very effective training tool. This technique is an excellent way to achieve a number of benefits for employees, management and support people. Role playing is not just practicing working with an imaginary customer out loud. Role playing allows a group of employees to act out scenarios. It opens communications, and for the amount of time when it puts a player 'on-the-spot,' it also gives a great deal of confidence and develops camaraderie among those participating in the role play situations. Role playing can be used in every department by management and employees to practice business situations. Role playing is the systematic building of correct habits while learning the acceptable system and the best way to communicate your ideas to the customer. Role playing should be done in a low-stress environment, which makes it easier to learn. The trainer can critique the role play situation and corrections can be made immediately by more rehearsal. We suggest that you schedule time every week for role playing exercises.

Later on in the course you will set goals and track progress based on individual goals for each person. For now, we simply want to begin building good habits and to begin practicing what people learned in the role playing assignment.

After practicing through role playing each person should begin asking

NOTES

personal questions as they talk to customers and continue this as you learn the

_________________________

next step. At your regular agency meetings discuss how this is working. Here

_________________________

are some questions to ask:

_________________________ _________________________



Do you see any changes in how people relate to you?

_________________________



Do you see any changes in the way you relate to people?

_________________________



Do you enjoy your day more?

_________________________ _________________________

Reading List

_________________________ _________________________ _________________________

SPIN Selling by Neil Rackham

_________________________ _________________________ _________________________ _________________________ _________________________ _________________________ _________________________ _________________________ _________________________ _________________________ _________________________ _________________________ _________________________ _________________________ _________________________ _________________________

SITUATION - HOME POOL Excess liability is one of the key areas where people tend to not have adequate coverage. It is also a coverage that the average consumer has difficulty understanding why they need it. Ask A Question 

Do you have a pool?

There are obvious insurance reasons why you want to know if someone has a pool and you will get that information as you get further in the process. For now, a pool is a great way to bring out emotions, especially when children are involved because people love to talk about their kids. If they don’t have kids find out about the social use of their pool.

Ask A Question

Listen carefully to their answers, emotions and feelings.



Do they/you ever have friends over?

Get to know them on a personal level.



How often are friends over?

thought about people hurting themselves at their pool you



How many friends typically come

have the perfect opportunity to move to the next step. You

over?

also have a great opportunity to let them know something

Do you ever think about someone

about you. Do you have a pool yourself and have you

hurting themselves?

thought about people hurting themselves? Share your



If they have

thoughts as a person, not as a vendor. Tell A Story

You will obviously tailor this story based on their answers

Imagine that you are standing in your

and individual situation.

kitchen looking out at your pool. It is a beautiful summer day and your kids are

In the story you want to tap into both pain and pleasure.

having a great time with their friends.

You want them to feel good remembering about the ex-

One of them slips and falls and hurts

perience but also feel pain when thinking that someone

themselves.

might get hurt. This puts them in the right frame of mind for the next step in the story.

TELL A STORY

Continue with the story you have begun based on their

Do you think that in today’s world the

individual situation.

parents of that child would think about asking you to pay for their medical bills?

Notice that in this example you are not giving them statistics are telling them what to think. Their opinions are coming straight from their own minds. Most people will agree that it is at least possible, if not probable, that the homeowner would be expected to pay for medical expenses. When the person says “yes”, you simply agree with them, not work at getting them to agree with you.

TELL A STORY

At this point we want people to realize this could actually

Let’s say that someone seriously hurt

happen to them. It must be real to them, not theoretical.

themselves.

Do you think it’s possible

that someone would actually try to sue you? Tell A Story

If the answer is “From my insurance” then in many cases

Let’s say they sued you for $1,000,000

they will have inadequate coverage which will set the

and won. Where would you want that

stage for the next step which is to bring them to a point of

money to come from?

decision.

Ask A Question

If the answer is yes, then your response is “No problem,

Right now that wouldn’t happen. The

we can take care of that for you.” Begin the process of

money would have to come from you.

completing the Umbrella application.

Does this concern you?

CHALLENGES DISCOVERED DURING ROLE PLAYING ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ TRACKING

 We will use this script  We did initial role playing for this script

SITUATION - TEEN DRIVERS We will look at another situation that will help the customer to understand the real possibility of facing a large lawsuit. This situation is perfect when you believe there are teen-age drivers in the family. Ask A Question 

Do you have teen-age drivers?

Ask A Question 

Do they drive your car?

If you have teen-age drivers yourself you can relate to the worry and concern that goes with parenthood. I realize that you need to know this for the company to be sure that all licensed drivers are listed. But that isn’t what we are interested in here. We are looking for a real-world situation that can be clearly pictured with strong emotion.

Ask A Question 

As insurance people we realize that the personal auto pol-

Do they ever have friends in the car

icy covers passengers in the vehicle. The more people in

with them?

the car the greater the exposure. However, the average person doesn’t think in these terms. What we are looking for here is an opportunity to create a unique scenario to help them understand the potential risk.

Tell A Story

This is probably a scenario every parent has thought about

Imagine that your son is out one night at

and feared; the idea of something happening to one of

a party with friends. There is an accident

their children. This brings home the reality of what can

and one of the friends gets killed and it is

happen and the very real possibility of a lawsuit.

your son’s fault. Do you think the parents of that friend would think about su-

It is important that the person feels the pain and reality of

ing you?

this situation.

It all comes down to the money, not an insurance policy.

Ask A Question 

Let’s say they won and you had to

If they don’t want to pay the money themselves then the

pay $1,000,000.

only other option is to use your money, i.e. an Umbrella

Where would you

want the money to come from?

policy. Assuming they don’t have an Umbrella policy, continue with the following question.

Ask A Question 

If they answer “Yes”, then your response is “No problem,

Right now that wouldn’t happen. The

we can take care of that for you.” Begin the process of

money would have to come from you.

completing the Umbrella application.

Does this concern you? COMMENTS AND NEW IDEAS ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ CHALLENGES DISCOVERED DURING ROLE PLAYING ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ TRACKING

 We will use this script  We did initial role playing for this script

SCRIPT - INCREASE AUTO LIMITS Especially with the advertising today it can be difficult to suggest higher limits without people looking only at the price. It’s not easy for them to truly understand the difference policy limits can make. Ask A Question 

So many times agencies use standard examples to suggest

Do you drive on major roads to get to

increasing limits. The problem is that the example may

work?

not be relevant to the individual. For example, “What if you hit a $60,000 car?” and the person never sees a $60,000 car. We want to find what is relevant to them as an individual.

Most people will drive on some type of main road when going to work so this example will apply most of the time. Let’s assume for the moment the customer says they travel on an interstate highway. Ask A Question 

Hopefully they can picture this happening. In fact, they

Have you ever seen an accident on

have probably thought about it happening and being in-

the interstate while going to work?

volved themselves as they have seen it happen to others.



What happened?



How did it feel to see it?

It‘s important that they feel the situation not simply understand it. Don’t be afraid to help them feel the pain of how it felt to see an accident.

In the next step you will put them in the position of being the person in the accident, not some stranger.

Tell A Story

If it happens to someone else it can certainly happen to

Picture yourself reaching down for your

you. However, most of the time we don’t allow ourselves

coffee. You look up and traffic has

to think about it happening to us.

stopped in front of you and it’s you that

roads and conditions the customer faces every day they

has rear-ended the four cars that have

can more easily put themselves right in the middle of the

been involved in the accident.

situation.

Ask A Question

By letting them set their own values you eliminate the



By using the actual

How much do you think cars cost to-

possibility of them feeling like you are setting them up for

day?

a sale. It will also give you a good idea of how they think

How much do you think the average

about costs.

hospital stay costs? 

How

many

vehicles

cost

over

$30,000? 

Again, don’t fall into the trap of helping them out. Let them come up with the figures, not you.

How much do you think the average hospital stay costs?

Tell A Story

Notice that you are not using insurance terms, you are

Based on your numbers let’s say there

simply asking them where the money to pay for the acci-

could easily be $300,000 or more in

dent would come from. You are also not putting any pres-

damages and medical bills. Where would

sure on them to agree with you or to buy anything. You

you want this money to come from?

are only asking what is important to them, which is extremely respectful.

It is important they face the realization of what could happen if such a loss were not covered. We will assume they say they would want the money to come from their insurance policy.

Ask A Question 



Right now you would have to pay the

have savings, investment property, recreational vehicles or

entire amount yourself. Would that

businesses they could all be gone by losing a lawsuit.

affect your lifestyle?

Don’t make this easy for them. Help them to see and feel

Would that affect any future plans for

the reality of the situation.

yourself or your family?

tails of how it would affect them.

Ask A Question 

There are so many ways this could affect a person. If they

Does this concern you?

Allow them to give you de-

If the answer is yes, then your response is “No problem, we can take care of that for you.” Begin the process of completing the Umbrella application.

COMMENTS AND NEW IDEAS ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ CHALLENGES DISCOVERED DURING ROLE PLAYING ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ TRACKING

 We will use this script  We did initial role playing for this script

SCRIPT- FLOOD You will generally know your area well enough to know when it’s appropriate to bring up the subject of flood coverage. This can be a difficult sell because it happens so infrequently. This same scenario can also be used for earthquake. Ask A Question 

If the answer is “yes” they have more than likely been in-

Do you live in an area frequented by

volved in a situation where they have seen property de-

flood or earth movement?

stroyed. Dig a little deeper to get details.

Ask A Question

Rarely does a flood or earthquake not affect family and



When is the last time this happened?

friends. Help the person to remember this and the realiza-



What happened?

tion that it could, and probably will, happen again. It’s



How much damage was done?

amazing how quickly people forget. Immediately after



How did it affect your neighbors?

earthquakes in San Francisco everyone bought earthquake coverage only to let the coverage lapse a few years later. Head knowledge won’t motivate someone to protect their property. They must remember the feelings associated with this type of tragedy.

Ask A Question 

If the person doesn’t think that there is a chance of it hap-

What do you think the chances are of

pening again then there isn’t much reason to continue.

this happening again?

You can’t force someone to believe, want or feel something. The best way to know what they think is to ask them. If they do believe it could happen again continue.

Tell A Story

How do you feel when you watch TV and see an area dev-

Imagine that your area is flooded and

astated by a flood. It’s good sometimes to detach yourself

your house, along with your neighbor’s

from the insurance side and think about how it would feel.

homes are totally destroyed. Help the person to get the image in their mind and the affect on their family.

Ask A Question 

Their answer will determine where you go from here. If

If it were to happen tomorrow and

they do not feel this is a possibility or that it wouldn’t af-

you had to pay for this out of your

fect their finances, then stop here. Otherwise, continue to

pocket, how would this affect your

bring them to the point of decision.

finances and your plans for the future? Ask A Question 

Does this concern you?

If the answer is yes, then your response is “No problem, we can take care of that for you.” Begin the process of completing the Flood application.

 We will use this script  We did initial role playing for this script

SCRIPT - PAY OFF MORTGAGE Unfortunately, many agencies fail to talk about life insurance because they either feel uncomfortable or inadequate. This is unfortunate because this leaves the customer unprotected. Ask A Question 

Do you know the top ten reasons why people lose their

Do you have a mortgage on your

homes? Would you be surprised to learn that fire or disas-

home?

ter are not in the top ten? The death of one of the primary income generators in the household can bring a family to the place of foreclosure. Usually this is due to a lack of sufficient life insurance to assist the family with the loss of income. If our main task is to protect people and not sell policies then it would make sense to help people make an informed decision about paying off their home.

Ask A Question 

While this may seem to be a rather personal question, it is

Are you dependent on two incomes to

one that must be asked. If the answer is “yes”, the family

enable you to maintain your lifestyle?

is in danger of losing the home if one of the income generators die without replacing their income.

Tell A Story

Lifestyle is the key word. In today’s American society

I know we don’t like to think about things

lifestyle is everything to many people. In the 1950’s a

like this, but imagine a death or serious

survey showed that the things that were most necessary

illness prevented one of you from work-

for survival included family, friends and home. Today,

ing. How would this affect your ability to

survey’s show that at the top of list are microwave ovens

maintain your lifestyle?

and cell phones. In most cases a person will admit that their lifestyle would be affected.

Ask A Question 

If this were to happen tomorrow and

Hopefully they will realize that there is a real problem if

you had to pay for this out of your

this is not covered. Remember to help them feel the situa-

pocket, how would this affect your

tion not merely understand it. If their answer is that it

finances and your plans for the fu-

would drastically affect their situation then bring them to

ture?

the point of decision.

Ask A Question 

Their answer will determine where you go from here.

Does this concern you?

If the answer is yes, then your response is “No problem, we can take care of that for you.” Begin the process of completing the life application or turn it over to the appropriate person in your agency.

 We will use this script  We did initial role playing for this script

SCRIPT- IDENTITY THEFT According to recent studies, Identity Theft continued to rise in 2009 with more victims in that year than in any period since the survey began in 2003, and the numbers have increased over the past several years. Ask A Question 

In recent years, more people have found the Internet a

Do you make purchases over the

convenient way to shop, pay bills and track banking activ-

internet?

ity. The world of electronic commerce, also known as ecommerce, has expanded our purchasing abilities from local retailers to world-wide companies and expedited our ability to shop while maintaining a busy schedule. Unfortunately, things can go wrong while shopping in cyberspace. Sometimes it is simply a case of a computer glitch or poor customer service. Other times, shoppers are cheated by clever “cybercrooks”. As you know there is coverage available to reimburse the policy holder if they fall victim to Identity Theft. In addition to this coverage many agencies are selling Identity Theft Restoration products.

Tell A Story

If the person does make purchases then help them under-

Let’s say that you buy something over the

stand the possible ramifications to Identity Theft.

internet and somehow someone steals your social security number and opens a

Because the average coverage on homeowners policies

credit card account under your name and

only pay for expenses and not the work to restore identity

you now owe $50,000 in fraudulent

your customer could be forced to spend dozens of hours

charges.

they don’t have. This can be a real wake-up call. For our

How much time would you

want to spend on clearing your name?

purposes let’s assume that the person would rather not spend any time which means they should have a product that will restore their identity.

If the answer is “yes”, your response is “Ok, we will take

Ask A Question 

What if there were a way to have

care of that for you” then proceed to gather information

someone else spend the time to re-

needed for the appropriate product.

store your identity for you.

Would

that help you? COMMENTS AND NEW IDEAS ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ CHALLENGES DISCOVERED DURING ROLE PLAYING ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ TRACKING

 We will use this script  We did initial role playing for this script

SCRIPT- LONG-TERM CARE As people are living longer the need for long term care increases. If we are truly in the business to protect people then we need to talk about it.

Ask A Question 

Anyone with even a passing experience with Alzheimer's,

Has it ever been necessary for anyone

stroke, Parkinson's or elder frailty can appreciate the se-

in your family to live in an extended

verity and financial devastation of these all-too-common

care facility?

life events and the inevitable care required.

Ask A Question

Again, this is a risk that can be highly emotional. Most of



What was the situation?

us don’t want to think about something like this happen-



Who was it?

ing, but the fact is that a person age 65 today faces a 40%



How did it affect their family?

chance of spending time in a nursing home during their lifetime. Instead of talking to someone about their own mortality or boring statistics it is much more effective to talk about how this has happened to someone else and the affect on their family.

Tell A Story

The average costs in the United States in 2009 were:

Imagine this happened to someone in



$198/day for a semi-private room in a nursing home

your family. Where would you want the



$219/day for a private room in a nursing home

money to come from to pay for extended



$3,131/month for care in an Assisted Living Facility

care?

(for a one-bedroom unit) 

$21/hour for a Home Health Aide



$19/hour for a Homemaker services



$67/day for care in an Adult Day Health Care Center

The fact is that people are living longer today than ever before and as mentioned earlier the average person age 65 today faces a 40% chance of spending time in an extended care facility. The cost for such care, as you can see, is incredible.

Ask A Question

If the answer is “yes” and they are concerned, your re-

Would it affect you financially to pay

sponse is “Ok, we will take care of that for you” then pro-

for the extended care yourself?

ceed to gather information needed for the appropriate



How would it affect you?

product.



Does this concern you?



 We will use this script  We did initial role playing for this script

SCRIPT - HOME-BASED BUSINESS It is estimated that home-based businesses make up half of the businesses in the U.S. That is a staggering number and it means that the number of your customers that have some type of home-based business is probably greater than you realize. Ask A Question 

Several years ago there was an actual E&O case where a

Do you have any income-producing

CSR asked a prospect if they owned or operated any busi-

hobbies?

nesses out of their house. The person said they didn’t and the CSR wrote the policy. Afterwards, when a claim was filed, the agency discovered that the customer made knives in his detached garage as a hobby and sold them at local gun shows. Someone had been injured with one of his knives.

The person had answered honestly. This was a hobby, not a business, and it was not in his home it was in his detached garage. The CSR asked the right insurance questions but not the most effective protection questions. For our purposes let’s assume you are the CSR that has a customer that makes knives and you discover his hobby. Tell A Story

There are so many cases where people are oblivious to the

Picture yourself at a gun show and some-

dangers around them until something happens to make it

one is admiring one of your knives. It

real. It is so much better to make it real before this hap-

slips out of their hands and cuts someone

pens.

really bad. Do you think that the person would expect you to pay for their medical bills?

Ask A Question 

If the answer is “my insurance policy” then you have to go

Where would you want the money to

deeper to decide if you simply add coverage for a home-

come from?

based business, add an umbrella, etc.

 We will use this script  We did initial role playing for this script

SCRIPT - JEWELRY AND OTHER ITEMS People can be protective about their possessions. When you, someone they don’t know well, begins asking questions about valuable items people can get really nervous. Ask A Question 

Do you ever go on vacations?

Vacations are generally positive experiences but they are also times when things are frequently lost or stolen. Have you ever had anything lost or stolen while on vacation? Do you remember how that felt? It was probably not good. The reality is the chances of a valuable item being stolen is much greater while on vacation than when you are at home.

There are so many cases where people are oblivious to the dangers around them until something happens to make it real. Do people a favor and make it real before this happens to them. You want them to see and feel the situation as if it were actually happening to them at that very moment. Tell A Story

Again you are not using insurance terms or talking about

Imagine you are on a beach looking at a

coverage. Right now the only important thing is to find

great sunset. Do you have any jewelry

out if they own anything that is important or expensive

that you would want replaced if it were to

enough to replace. There are numerous other scheduled

fall into the ocean or someone broke into

items that might need to be scheduled but you can create

your hotel room and stole it?

individual stories for them. Deal with them one at a time.

If the answer is “yes” then your response is “Tell me about them” and began gathering the information you need to schedule them. This same format can be used for many scheduled items.

 We will use this script  We did initial role playing for this script

SCRIPT - BUSINESS INCOME Its amazing how most people want to avoid thinking about the possibility of negative things happening in their lives. However, as protection specialists our job is to help them face these realities.

Ask A Question 

People never think that something bad will happen to

Do you ever have bad storms, hurri-

them. But when they can picture another business being

canes, tornadoes in your area?

hit by a storm or disaster it will make it easier to realize it truly can happen to them as well.

Ask A Question

Help the person to remember the reality of this and the



When was the last time that one hit?

realization that it could, and probably will, happen again.



What happened?

It’s amazing how quickly people forget. As mentioned



How much damage did it do?

earlier, immediately after earthquakes in San Francisco



How did it affect businesses in your

everyone buys earthquake coverage only to let the cover-

area?

age lapse a few years later. Head knowledge won’t motivate someone to protect their property. They must remember the feelings associated with this type of tragedy.

Tell A Story

If a disaster hits an entire area then the time to rebuild will

Imagine a tornado hits your building and

be dramatically longer. In fact, its possible that materials

its destroyed like the ones near you.

would be in short supply as well.

Ask A Question

An agency in Texas heard on the news that a tornado was



How long do you think it would take

heading their way. Before it even hit the owner called a

to rebuild?

commercial realtor and secured new office space. Within

How long do you think it would take

15 minutes after it struck the was no commercial space

to find a contractor?

available in the entire area. Its amazing what a little plan-

Do you think it could even take a year

ning can do.

to rebuild?

Ask A Question 



You are looking for the affect on the business’s cash flow

If it took a year to rebuild would you

to continue these expenses. Assuming their response is

prefer to lay-off your employees and

they would want the money to come from their insurance

rehire in a year or would you prefer

policy then your response is “No problem, we can take

to keep them on the payroll?

care of that for you”.

Where would the money come from to pay the salaries?

 We will use this script  We did initial role playing for this script

SCRIPT - VALUABLE PAPERS Sometimes its difficult to talk about coverage outside the norm of auto, property and general liability. Although this coverage is commonly included with a BOP, it is useful as an example.

Ask A Question 

Do you have any legal papers, client

Before talking about the a potential problem we need to first discover if a problem even exists.

files or accounting records? Ask A Question 



Don’t make this easy for them by filling in the blanks for

Would it affect your business if these

them. Let them say it in their own words. Remember,

records were destroyed?

they need to feel the emotions and have the realization of

How would it affect you?

what could happen and this won’t be nearly as clear if you simply tell them. Let them discover it for themselves.

Tell A Story

This actually happened to an agency in Texas. Vandals

Imagine that vandals broke into your of-

took every piece of paper out of every file and scattered

fice and destroyed all of your files. How

them all across the building. It was impossible for the

much do you think it would cost to re-

agency to rebuild their files. Think about if this happened

build, replace or handle the loss?

to one of your customers.

Ask A Question

If their answer is from their insurance policy then your



Where would you want the money to

response is “No problem we can take care of that.”

come from? COMMENTS AND NEW IDEAS ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________

 We will use this script  We did initial role playing for this script

SCRIPT - BUY-SELL The reality is that if a sole proprietor, or a partner in a partnership, dies the business dies with them unless prior arrangements have been made. There are also issues with corporations.

Ask A Question 

It is important to know the basic differences in business

Are you a corporation or a sole pro-

structures because they each have their own unique expo-

prietorship?

sures. For the purposes of this exercise we will assume the business is a sole proprietorship.

Ask A Question 

Every day you protect businesses from fire, theft and li-

What provisions have you made for

ability exposures but the reality is that one of the greatest

your business to continue if you were

risks is the death of the owner. A business may be able to

to die?

recover from an unprotected P&C loss but it is impossible to recover if the owner dies without the proper provisions made.

Tell A Story

A buy-sell agreement is a contract among the owners of a

Although we don’t like to think about it,

business which provides terms for their purchase of a

the reality is that things can happen. As a

withdrawing partner's or stockholder's interest in the en-

sole proprietor at your death your busi-

terprise. It protects the family and the business in a very

ness legally dissolves and it is possible

difficult time. This is funded by a life insurance policy.

that creditors can ask that all debts are paid immediately. Would either of these affect your family?

Ask A Question 

At this point you may need to pass this over to someone in

What if there were a way to make

your office that is knowledgeable about life insurance and

sure that your family could continue

buy sell agreements.

the business? COMMENTS AND NEW IDEAS ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ CHALLENGES DISCOVERED DURING ROLE PLAYING ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ TRACKING

 We will use this script  We did initial role playing for this script

SCRIPT - UPDATED BUILDING CODES There are many situations that can be awkward to talk about. However these what-if situations can find potential gaps in coverage and help your customer to feel better about their insurance and about you.

Ask A Question 



Life changes fast these days and often people don’t keep

Do you ever change the by-laws for

up with the changes. Unfortunately this can mean that a

your business?

loss is not covered the way people want or think it will be.

Do the building codes ever change in

What if building codes have changed and the current cov-

your area?

erage won’t cover the new requirements?

Tell A Story

Imagine the surprise if a customer expected repairs to be

What if new building codes required you

made based on old codes and the impact on their business

to rebuild at a greater cost than your pol-

if they were forced to pay for additional work out of their

icy will pay. Where would you want the

own pocket? Imagine how they will look at their agent.

money to come from? Ask A Question 

Right now you would have to pay the

Remember the assumed close and proceed to make changes to the policy as necessary.

additional out of your pocket. Does this concern you? COMMENTS AND NEW IDEAS ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________

 We will use this script  We did initial role playing for this script

SCRIPT - BUSINESS PERSONAL PROPERTY This is especially true with owners of small businesses. They can have exposures they never think about but could cost them everything.

Ask A Question 

Many times a small business owner will not think about

Do you have any business personal

separating business and personal property and could easily

property stored off-premises?

have business property stored at their home or other location.

Ask A Question

Always keep in mind that you are looking for opportuni-



What is it?

ties to build a unique scenario not simply gathering under-



Why is it stored off-premises?

writing information. You want them to realize there is a



Where is it stored?

problem they had never thought about.

Tell A Story

Here is an actual story. A contractor kept his tools at his

Imagine that someone breaks into your

mother’s house where he was living for a few months. A

home and steals your business tools.

storm destroyed the shed where the tools were kept and the insurance company denied the claim under the homeowner’s policy because they were business tools and he didn’t have coverage under his business policy.

Ask A Question 



Don’t tell them how much it would cost. Get them in-

How much do you think it would cost

volved in the process. Make them come up with the an-

to replace them?

swers themselves. When you ask the question about the

Would it affect your business if you

money it is their money not some academic exercise.

couldn’t replace the property? 

How would it affect your business?

You want the customer to see how valuable their relationship with you is to their business. Without you they could be in serious trouble. Don’t diminish this pain.

Ask A Question 

Would you prefer for this property to

If their answer is “yes”, your response is “No problem, we can take care of that for you.”

be paid for by your insurance policy? COMMENTS AND NEW IDEAS ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ CHALLENGES DISCOVERED DURING ROLE PLAYING ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ TRACKING

 We will use this script  We did initial role playing for this script

SCRIPT - POLLUTION SPILL Although this isn’t a situation that will apply to the majority of your customers it is one that can help you to think of dozens of others that will apply.

Ask A Question 

Have you ever had a pollution spill

If the answer is “yes” you have an excellent opportunity to develop a need.

on your property? 

Is there any possibility of having a pollution spill?



Do you know other businesses that have had a pollution spill?

Ask A Question 

When was the last time this hap-

Here again the idea is to have the person remember and feel the affects of the situation. It must be real to them.

pened? 

What happened?



How did it affect the other business?

Tell A Story

While the most obvious answer is “yes” it’s not our place

Imagine that you had a pollution spill on

to assume how the customer feels. You are treating them

your property and there was a $400,000

with respect by asking them what they would want done.

clean-up charge that you had to pay.

Ask A Question 

While the most obvious answer is “my insurance policy”

Where would want the money to come

it’s not our place to assume how the customer feels. You

from?

are treating them with respect by asking them what they would want done. If this is a concern then begin the process of adding the coverage.

 We will use this script  We did initial role playing for this script

SCRIPT - KEY MAN This is a risk that many business owners are unaware of. It is typically a greater danger to their business continuation than any P&C exposure.

Ask A Question 

The fact is that many businesses are dependent on key

Do you have employees that are criti-

people. For example a top salesman, manager or account-

cal to your business operations?

ing person. If these people were taken out of the picture the business could suffer a loss of income, loss of customers and face a difficult and expensive ordeal in replacing the person.

Ask A Question 

Who are they?



Why are they critical?



How would it affect you if they left?

This could be the first time that someone has challenged the customer to think about the value of their people.

Tell A Story

This is definitely a time to help them feel the pain and

Let’s say that a key person, left tomor-

pressure this situation could cause.

row. Ask A Question 



How long do you think it would take

takes a job somewhere else or is fired, but there is a lot

to replace them?

that you can do if the person dies and becomes disabled.

Do you think that you would lose customers because they left?



Let them know that you can’t help them if the person

Do you think you would have to increase salary for this position?

Ask A Question 

Begin gathering information about the employees. You

Which employees would this apply

can turn this information over to the appropriate person in

to?

your office to begin working on this with the customer.

 We will use this script  We did initial role playing for this script

SCRIPT - EPLI As you know, this is one of the biggest exposure facing business owners today because of our litigious society. Ask A Question 

Have you ever had to fire anyone?

No one enjoys having to fire an employee. It almost always is an uncomfortable situation. But the reality is that today a disgruntled employee can cause real trouble for businesses. There is also a pretty good chance that at some point they will have to fire someone again.

Ask A Question

Help them relive the reality of it. Encourage them to give



What happened?

you all the nitty-gritty details. Don’t leave anything out.



How did it feel?

This will help them to think about what could happen if



Do you think that you will ever have

next time it leads to a lawsuit.

to fire anyone again? 

Do you think that there is any possibility they could sue you for wrongful termination?

Tell A Story

As we’ve said so many times, it always comes down to

Let’s say you were sued for $1,000,000.

the money. The fact is that $1,000,000 could ruin their

Where would you want the money to

business. Help them realize that.

come from? Today, people are looking for their lottery ticket and their chance to cash it in. If they see an opportunity to sue an employer there is a good chance they will take it. As you know, most people think it won’t happen to them, especially if they are a small business owner.

Ask A Question 

Right now that money would be paid

If the answer is “yes”, begin the process of adding the coverage.

from your business cash flow or cash reserves. Would that create a problem for your business? COMMENTS AND NEW IDEAS ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ CHALLENGES DISCOVERED DURING ROLE PLAYING ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ TRACKING

 We will use this script  We did initial role playing for this script