Case 2: Selling a Computer and Liability Insurance Bundle

Case Background

You're the lead broker on a stable client insurance account where AW provides team currently provides 30% of their PDBI insurance. This covers damage to their buildings and losses if their business has to shut down. 

Note: The team does not usually take partial shares of EC insurance (which covers worker injuries). EC is typically written at 100%.

You have concerns about the client's Computer policy. This policy covers things like data loss or equipment failure. The money lost has been small. But there have been many small claims. This has created extra work and problems with the current insurer.

At the same time, the client needs CGL insurance (which covers accidents or injuries to the public). You want a solution for the Computer policy. But you don't want to make the client pay very high deductibles. Deductibles are the amount paid before insurance starts. You also need a quick answer.

This program must start within 60-90 days. This timeline is important to you.

Role B — Lead Broker

Goals

  • Replace the current insurer for the Computer policy.

  • Get a better total cost for the client. Don't force them to accept very high deductibles.

  • Keep a healthy commission for yourself.

  • Avoid the service problems that made the client unhappy before.

Levers (Your Negotiation Tools)

  • You are willing to give one insurer a bigger share. But only if the bundled price is clearly better.

  • You have other quotes for the Computer policy. You can use these to create pressure.

Likely Objections

These are arguments the underwriter might make:

  • "These frequency controls just shift the cost back to the client."

  • "These deductibles are too high for the client."

  • "Bundling policies like this reduces competition."

BATNA (Best Alternative to a Negotiated Agreement)

Your BATNA is your backup plan. Use it if you can't reach a deal.

  • You can split the policies. Keep the current insurer for the Computer policy. Or find a new one. Then give the CGL insurance to whoever offers the best price.