BOOTS ON THE GROUND

Why agents should spend

time on site with clients

By Larry Chasin

Insurance is a business rooted in relationships, and cultivating and maintaining relationships is just as important today in insurance as it ever was. What’s changed is how we maintain our relationships with our policyholders. 

With ever-evolving technology and in a post-pandemic world, many agents and brokers have moved away from in-person visits for commercial policyholders for convenience, cost and other reasons. But as our policyholders face continuing natural disasters, rate changes, insurance-to-value issues and more, in-person face-to-face meetings can be critical to educate and prepare a policyholder for whatever the future holds, as well as to ensure you remain their trusted advisor for all of their insurance needs.

The value of an in-person visit

As a leading program administrator in the winery and brewery spaces, we have seen firsthand the impact that a lack of regular visits to a policyholder’s facility can have.

Post pandemic, many wineries upgraded or added property or equipment. In some cases, we heard from agents that they had not been alerted by their winery clients of these changes. Imagine a winery adding new big-ticket items like a backup generator or large-scale crush equipment worth several hundred thousand dollars and neglecting to share this information with their agent.

Of course, without informing the agent, if damage were to occur, the winery owner may be left on the hook for repair costs they may not be prepared to tackle. This lack of communication could lead to the business owner switching insurance providers out of frustration. But it can easily be resolved with more visits to the facility and communication with the owner.

That said, even in situations where winery owners have proactively reached out to inform their agents of new additions, a visit can still provide great value. Rising material costs have caused significant fluctuations in values, which has led to soaring replacement costs, in addition to longer downtimes while securing the needed parts to repair or replace equipment. The winery owner may not realize this in their calculation of the replacement value of the new addition, but an agent visiting the property would have the foresight to suggest increasing coverage limits to ensure the policyholder was adequately protected.

Aside from helping to keep coverage limits in line, an in-person visit can help ensure everyone is on the same page. On a winery property with more than 400 acres of land and numerous buildings, it is important that both the agent and owners understand the full extent of what the property contains and what is covered by a standard insurance policy.

Too often, we see instances where critical infrastructure such as fire pump houses or irrigation and water treatment facilities can be missed without an in-person visit. These pieces can add up without adequate coverage. Agents visiting the property can ensure all equipment and structures on site are protected by the policy. They can also revise limits to ensure repair and replacement values are accurate.

A boots-on-the-ground approach can lead to a more intimate understanding of an individual business’s operations and needs, and therefore deliver the highest class in service.

The benefits of this were on full display during the 2020 Glass Fire that broke out in the Napa and Sonoma Wine Country. A prominent winery in the area reached out as the disaster was unfolding. With wine in process, they had lost power and were cut off from their property due to road closures. Time was critical to not jeopardize the product.

Through intimate knowledge of the insured’s property and operations we were able to secure a backup generator, transport it to the Napa area, clear it through checkpoints, and know exactly where to install it on site to restore power and allow the continuation of the production process without any loss of wine. By visiting the winery beforehand and knowing the ins and outs of the insured’s business we were able to react quickly and efficiently to the business owners’ needs to avert a large loss in a situation where every minute was critical.

Lastly, of course, on-site visits are incredibly valuable toward building a stronger client relationship. These experiences can solidify your place with the insured and demonstrate your commitment. The personal touch of walking the property and providing active counsel on risk mitigation can enhance the client experience and assist with retention.

We recently had a brewery client that specifically called out how much they appreciated our team sitting in their taproom and acting as a brewery customer during the renewal process. This attention to detail can go a long way in the insurance industry.

How to conduct a good
in-person visit

In-person visits should be conducted at least annually. Consider these best practices to maximize your visits:

Meet with the right people. During your visit, ensure you are meeting with decision makers. At a winery, this would include the business owner, the operations manager, the winemaker and the tasting room manager. They all may have key insights into the facility’s makeup, layout and risks that will help you understand their operation.

Be thorough. Take your time and comprehensively review the business to ensure all property is noted on the policy. Confirm square footages and building finish details are accurate so you can share accurate replacement costs. Check to see if any new equipment such as production equipment or backup power has been added, as well.