1 Commercial Flood Insurance How to Keep Your Business in Business NFC 2010 Workshop | Apr | San Diego, CA

AGENDA: Introduction Commercial insurance training Agent Perspective FloodSmart resources Discussion 2 Agenda Add note

INTRODUCTIONS: Moderator: Patty Latshaw – American Bankers Insurance Company of FL Dorothy Martinez, CFM – NFIP Training (GeoLearning/H2OPartners, Inc.) Denis Miller – Dennis A. Miller Insurance Meg Bartow – FloodSmart 3 Introductions

Commercial Insurance COMMERCIAL INSURANCE: A 3D perspective 4 Overview THE SALE Dennis Miller MARKETING Meg Bartow TRAINING Dorothy Martinez

Add note TRAINING: What agents need to know Protect Your Client, Protect Yourself Find your comfort zone with flood Offer flood coverage with every hazard policy! E & O Exposure Documentation Don’t underestimate your relationship with your client 5 Main Point 1

Add note TRAINING: What agents need to know LOCATION, LOCATION, LOCATION Flood Zone Determination FIRMette 6 Main Point 2

Add note TRAINING: What agents need to know Definitions Single Building Additions and Extensions Rigid exterior wall, Solid load-bearing, Interior wall, Stairway, Elevated walkway, Or a roof. 7 Main Point 3

Add note TRAINING: What agents need to know Residential vs. Non-Residential It’s ALL about occupancy Residential with more than 5 or more units Non-residential building or unit RCBAP 8 Main Point 4

Add note TRAINING: What agents need to know Know your product The Flood Insurance Manual is your friend Limited Coverage Loss of Profits Loss of Use Loss of Access 9 Main Point 5

Add note TRAINING: What agents need to know Other Considerations Other Insurance: (Excess Flood) How it responds Preferred Risk Policy Is there more opportunity in your book? 10 Main Point 6

Add note TRAINING: What agents need to know In the end--It’s about RECOVERY 11 Main Point 7

AGENT PERSPECTIVE: Denis Miller, Dennis A. Miller Insurance Challenges Real-World Experience Best Practices 12 Introductions

FLOODSMART: Communicating risk to businesses Why commercial flood insurance? FloodSmart efforts and findings Future efforts Feedback 13 Communicating Risk

FLOODSMART: Room to grow Currently commercial policies account for only 5% of total NFIP policies in force. 14 Communicating Risk

FLOODSMART: Business owners have misconceptions too The government will bail me out – Most businesses do not qualify for grants and if they do, grants can take so long to get that your business can close while you wait. Agents only encourage flood insurance because adjustment is easier when multiple perils are covered. Businesses can get small business loans with favorable interest rates through the SBA. 15 Communicating Risk

FLOODSMART: Businesses have more to lose Business owners are supporting other families and could be a supplier for other small businesses, so coverage is extra important. Risk rating from lenders is important for business owners, and not having flood insurance increases their risk level. 16 Communicating Risk

FLOODSMART: One-step flood risk profile One-step tool on FloodSmart.gov lets businesses find their risk and find an agent all at once. 17 Communicating Risk

FLOODSMART: Flood testimonials from business owners Real stories of how business owners experienced flooding makes the message more influential. 18 Communicating Risk

FLOODSMART: Information for businesses FloodSmart.gov has targeted information for businesses: – Business property risk – What’s covered – Understanding the basics – Questions for your agent – Agent locator 19 Communicating Risk

FLOODSMART: Talking points for agents Found on Agents.FloodSmart.go v, talking points guide agents through the questions prospective businesses may have. 20 Communicating Risk

FLOODSMART: PRP brochure Promotes low-cost flood insurance for businesses. Highlights non- residential building and contents policy premiums. 21 Communicating Risk

FLOODSMART: Direct mail to business owners Drives home the message that floods are the #1 disaster and the financial consequences facing their business if/when it floods. – Mail volume 130,000 – Policies sold 1, % conversion 22 Communicating Risk

FLOODSMART: Findings Top performing markets for direct mail tended to be coastal: – New Orleans – Miami – Ft Myers – Corpus Christi – Biloxi 23 Communicating Risk – West Palm – Houston – Savannah – Beaumont-Port Arthur

FLOODSMART: Future Plans Mail on demand advertising tools Continue small business mailing to top performing coastal markets. 24 Communicating Risk Coop advertising templates

FACT FINDING AND DISCUSSION: What other challenges exist for agents? What motivates business owners to protect their business? What other tools would help agents sell flood commercial flood insurance? 25 Communicating Risk