MAYBE OBI-WAN was right. Once you start down the path to the Dark Side, it will forever rule your destiny. This seems to be true--at least if you go by my experience in seminar teaching. Clearly many insurance folks--once normal, open-minded human beings--have succumbed to our industry's Dark Side. They believe the one with the most technical knowledge wins. Just as Anakin was seduced by the lure of secret knowledge, which he saw as the path to saving Padme and ruling the universe, we attend our secret meetings, convinced we'll save our careers and rule the insurance universe, if only we come to understand the deepest coverage-form mysteries. (For those who think I exaggerate with the "secret meetings," why are our IDs checked at the door? Heaven forbid that consumers should slip into the sacred temples and learn the path to righteousness for themselves!)

While there's nothing wrong with the search for knowledge, there's a great difference between knowing and applying. I have no doubt that, on hearing of his beloved wife's death, young Darth Vader would have agreed with American poet and philosopher Bob Seger: "Wish I didn't know now what I didn't know then."

Let's play a little "Match Game." Can you guess the most frequent answers I got from students at a recent sales seminar? The question was, "As a prospect or client, why should I cough up extra money to buy an umbrella policy in addition to my CGL or HO?"

Have your answers ready? Here are their top answers, in order of most frequent response:
oYour underlying policy's limits aren't enough.

oIt's relatively cheap for the amount of coverage.

oIt covers more stuff/fills gaps in your underlying coverage.

oOur carrier/agency coverage minimums require this.

These are all valid reasons--but from whose point of view? Before being seduced by the Dark Side, these folks no doubt saw insurance from the consumer viewpoint. Thanks to a veritable avalanche of brainwashing--starting with their licensing classes and continuing via CE requirements--they now default to the view that everyone sees insurance from a technical standpoint.

Wrong. Consumers see it from their point of view, not ours. Therein lie the communication breakdowns that lead to mistakes, missing coverages at time of need, broken relationships and E&O claims. Consumers will buy umbrellas, but for their reasons. These may include:
--Fear of massively growing judgments against others in their industry or community.

--Contracts they've signed that include provisions they don't understand but must agree to if they are to find work.

--Leases that require higher limits than those of primary coverage.

--Potential operations, such as occasionally renting an aircraft or watercraft, when a need for coverage may arise but the exposure is so incidental it isn't worth purchasing a specific policy for it.

How do we "stop the madness"? In class, I always suggest we begin by asking ourselves, "So what?" This forces our brains outside the purely technical into the practical. Consumers don't buy insurance because they admire its technical beauty. Think about a Harley-Davidson. Both a mechanic and a rider gaze in awe at the newest, shining, horsepower-beyond-belief model. But while the mechanic's eyes glaze over with thoughts of horsepower ratios and gearing combinations, the rider's mind is winding down a mountain road, wind whipping against his helmet, blowing past those poor fools trapped in their little metal boxes, his "old lady's" arms tight around his waist. While the bike is a technical work of art, you're more likely to connect with (and properly sell and service) clients if you can get into their heads and out of yours.

Learn to think like a consumer and still understand the technical details. Instead of trying to convince consumers of your technical prowess--leaving them confused and prone to file suit at a later date--listen to their thoughts and needs, knowing if there's a tech-nical solution available you either have it or know where to look. As Steven R. Covey, author of "The Seven Habits of Highly Effective People," said so well, "Begin with the end in mind."

For example, readers of newspapers or business magazines are inundated with discussions of the growing fear that American business won't be able to meet its future needs for qualified employees. From outsourcing to falling educational standards to evolving changes in the workplace, one drumbeat dominates: Future success in business will require a struggle to find and keep the best employees. Agencies in search of great producers and support staff know this.

Think this is a management issue? What's it got to do with insurance coverages designed to address specific exposures to loss? Ah, my dear padawan, unlearn what you have learned. It can save you! Finding and retaining qualified employees is the key to success. As trusted advisers we must focus on helping our clients succeed. The real question is, "What technical insurance coverages will help my clients meet this need?" Or phrased in a more technical insurance/risk management way, "What exposures to loss does this need create for my client that my products and services can help minimize or eliminate?"

Financial planners and benefits folks are now thinking, "Piece of cake! The more benefits, the happier the employees and the higher the retention rate. So pile on those life, health and 401(k) options!" In contrast, see how easy it is for P&C folks, trapped by the Dark Side, to overlook a potential motherlode? Following a single thought can lead to a wealth of coverage possibilities.

Thought: Unlike larger employers, many of our commercial clients are new to the constant pressure of seeking, screening and hiring. I
Coverage implications:
oHigher wages, larger staff: workers compensation, CGL.

oBigger office, larger facilities: commercial property.

oClient needs to generate more rev-enues to cover higher overhead to hire and retain best employees: all basic insurance; performance bonds; contractual; additional insureds; vendors.

Need for revenue stream to continue uninterrupted: business income.
oNeed to pay employees during period of restoration or risk losing them to competitors: ordinary payroll coverage added to business income.

oSome employees may be dishonest: fidelity.

oUndertrained or unobservant employee makes major mistake on customer's account: professional liability.

oClient accused of discrimination in hiring, firing or workplace: EPLI.

oClient accused of botching the promised benefit package: employee benefits liability.

oNew employee proves moderately competent and "Peter Principle" propels him or her into top management, where the true meaning of "moderately competent" is revealed: D&O.

As I write this, our country recently lost two beloved icons. In tribute, permit me to give their legacy the last words.

From President Gerald Ford, be pardoned of your errors in the past. Resolve to set aside whatever technical gems you have considered your claim to fame. Start today to build a new relationship with current and future clients. You have great technical skills, my apprentice. Use them not only for pride in your knowledge and designations, but for the healing of your clients' troubled minds.

And from the Godfather of Soul, James Brown, let us learn you can be the "hardest-working man in showbiz" and still have a great time. In his memory, find a backroom and pour some oil or grease on the floor. Start at one end of the room and run like crazy toward that slick slice of floor. When you hit it, plant your feet and slide all the way, shouting, "I FEEL GOOD! YEEOOWWWW!!!"

Who says insurance can't be fun?

is an insurance educator and speaker with more than 30 years in the industry. He is also chief fun officer of www.insuranceisfun.com.

Special Reports /

Policy Issues: Don't Forget That Expertise is Only a Means to an End

Related Stories

Recommended For You