“Have you ever heard of single-premium life?” – Ned Ryerson (BING!), Groundhog Day
Do you know your insurance policy inside and out? Do you count reviewing and renewing your insurance policy among your favorite pastimes? Do you regularly find yourself saying, “Gee, I love shopping for insurance!”? If you answered ‘No’ to any of these questions, read on, and get to know my friend Troy Sibelius, CIC, who is also the 2021 Professional Independent Insurance Agents of Colorado (PIIAC) Agent of the Year and Executive Vice President of The Buckner Company.
Unless you’re an insurance professional, you may not know, as I did not, that “CIC means Certified Insurance Counselor. This means Troy helps people buy insurance. “The Buckner Company is an independent agent,” Troy says. “That means we don’t represent any one particular insurance carrier. We work for the client and help them find the best insurance program for their needs and their business.” Buckner has connections with dozens of insurance carriers and employs over 50 independent insurance agents that have experience with every industry and every type of coverage.
“The thing that energizes me every day is helping people,” Troy says, his passion for his clients is evident in his voice. “Nobody likes insurance, but I love helping people understand insurance better.” Insurance is different than most goods or services that you shop for and buy because it isn’t delivered in a box and isn’t performed while you watch. “We’re not selling a new house or a car wash that you can see and appreciate right away,” Troy explains. “An insurance policy is a contract that says, ‘if you have a claim, you’re going to get paid’ – so the trust factor is crucial.”
When clients first call Troy, most often it’s because one of their insurance policies is up for renewal and the client is looking for alternatives. Most new clients are interested primarily in lower premiums, but in some cases the existing agent isn’t providing the service the client needs. When taking on a new prospect, Troy and his team typically ask the client to provide claim history dating back at least three years, and they will ask lots of questions to learn the client’s business and evaluate the level of risk. It’s only when Troy and his team fully understand the client’s business and risk tolerance that they approach an insurance company to ask for coverage and premium quotes.
This may all sound like lots of busy work, but Troy shared that this investment pays dividends. In one notable case, Troy’s client had traditionally provided erosion control construction services – slope stabilization and other big projects that carry with them lots of risk – but had, within just a few years before meeting Troy, changed its business model to focus on commercial landscape design and installation services that are far less risky. Even though, at the time the insurance company’s underwriters were evaluating the client’s application the client’s website listed reclamation and stabilization services as the company’s primary service offerings. By thoroughly presenting and explaining the company’s history and change of focus to the underwriters, Troy got the underwriters to agree to classify the business as a landscape contractor, rather than a reclamation contractor which lowered their premium significantly. Troy says. “We have to paint a picture for our underwriters so they understand what the business is doing.”
As a result of the recent Covid shut-down of our entire economy, many of Troy’s restaurant and hospitality clients, among other industries, were forced to implement cost-saving measures to match sharp revenue declines. These measures frequently included reducing payroll, but few business owners considered a reduction in their insurance premiums. Troy actively reached out to the insurance carriers to ask them to re-evaluate premiums and help his clients survive the difficult circumstances.
In a related situation brought about by the need to drastically cut costs, Troy worked with his client and the insurance carriers to split two coverages from a single policy into two separate policies to take advantage of the best pricing for each coverage offered by different carriers. Troy shared that this wasn’t an original idea – it was based on his experience separating automobile coverage policies from general liability coverage policies for his contractor clients who operate large truck fleets. “This is one advantage of having access to many different carriers,” Troy said. “Sometimes we have to get really creative to find the right coverage, and it’s where our expertise and market knowledge really help.”
While he shared that he is pleased to work with any client when it’s a good time for the client, Troy also explained he prefers to have 120 days or more before a policy expiration date so he and his team can learn the client’s business, explore the market, and prepare a detailed submission for the underwriters. By giving Troy this lead time, it allows his team to find policies and prices that best fit the client’s needs. Following up on their standard application and approval process, Troy’s team customizes the information collection and presentation process for each client and the unique risk profile that the business faces.
Troy provided your author (who usually needs over-simplified examples) with the following hypothetical example to illustrate how he might work with a poor claims history. “Maybe a contractor’s employees were involved in lots of traffic accidents where they rear-ended other cars. We would ask: ‘Why is this happening?’ What are the drivers doing out there?’ If it turned out, in this hypothetical example, that the drivers were using mobile devices while driving, we might suggest that the company provide hands-free devices and train the employees about their use or eliminate the use of these devices in their vehicles altogether. We’d then go to the carriers and explain, ‘Look, the contractor implemented a hands-free device use policy, and here’s how it’s affected and lowered the number of accidents.’” Using strategies like this, Troy gives underwriters a complete and realistic picture of the risks each client is facing and, in many cases, negotiates better premiums for appropriate coverages.
Just as some people are more risk-tolerant than others, some clients and prospects need more of Troy’s hand-holding. We all have some clients and contacts who prefer to talk with us only when they call. For most clients, however, Troy and his team employ processes to ensure that they reach out to the client to, among other things, checkup on safety measures, policy renewal needs, potential claims, and general well-being of their business.
Troy shared that he hopes his clients think of him at the same level as they think of their accountant or their doctor. Troy wants each client to tell him everything, with confidence that he’s not trying to sell them the highest-priced policy or is “just out to make a buck.” Troy and his team work hard to provide exceptional service – like returning phone calls and emails quickly and maintaining a thorough understanding of the client, their industry, and the insurance market. And, by the way, if the client or prospect already has in place a great policy and a great premium, Troy will tell them.
When you might be looking for a broker, Troy recommends looking for someone who thrives by studying and learning. Diligence and willingness to work hard are also common qualities of exceptional brokers, and the best brokers can talk insurance with you in plain English. When you find the right broker, Troy recommends you let that person do all the “shopping” for you. Many Large insurance brokers have access to most of the same carriers, and a carrier will quote only the first application they receive on behalf of a client. Lastly, says Troy, “share openly with the broker. Even though the insurance company pays the commission, the broker works for you.” You can only be certain that you’re covered for all the risks you might face only if you’re willing to share openly and unreservedly with the broker.
If it’s near the expiration date of your current policies or you’re considering changing agents and would like to get to know Troy, please reach out to me. I’d be honored to connect you.