Soaking up 63 years of business and building client relationships, Hugh Cotton Insurance (HCI), Orlando, Fla., was one of the largest representatives of agribusinesses in the country, including large citrus processing facilities and growers in Florida until it grew business with auto and marine coverages. It also has maintained a 95 percent client retention rate for its particular focus on customer services, keeping client needs and satisfaction above anything else.
"We have a great client base," Thomas Cotton, president and CEO of HCI, said. "They stop by our office to meet their account executives, who always place the interests and needs of the clients first."
A finalist in American Agent & Broker and National Underwriter's 2010 Commercial Agency Awards for Excellence, HCI focuses on customer service through the collective knowledge of its 21 employees. The agents and account managers take the time to answer phone calls, listen to the customers and understand their business. Because HCI's clients are neighbors and fellow business owners in the community, the agency maintains a personal relationship with its insureds, reaching out to them through personal visits and developing friendships and lasting bonds. HCI's senior account manager has worked at HCI for 54 years, and customers enjoy calling HCI and talking with an old friend who knows and understands their business, instead of someone new every time.
In the budding of a new relationship, HCI's goal is to know everything about the company inside and out, and help grow companies to protect their assets, people and futures. HCI's renewal strategy consists of the client's business plan, operating strategy, exposure changes, risk management philosophy and goals and objectives.
For example, one customer was a Japanese pile-driving operation that came to the U.S. with unique technology that rendered the pile-driving process silent and vibrationless. Many insurers wanted to treat the company like any other pile-driving business; but HCI understood the hardest sell is getting the insurance company to commit the resources needed to do the deal.
HCI scheduled demonstrations and flew in loss control representatives and underwriters from a large Japanese-based insurance company. The face-to-face dialogue and senior company officials and client convinced the insurance company to write the risk.
Many of HCI's customers are small businesses, and HCI delivers policies directly to them, assisting them outside of regular business hours to meet their schedules. One business owner, the victim of a fire that destroyed his business on a Friday night, called his HCI agent, who reviewed the policy coverages and contacted an adjuster for the carrier—all after hours on his cell phone. The agent and the adjuster both met the insured the next morning, prepared to settle the claim and gave a check to the insured then and there.
HCI acts as mediators, ensuring that its clients get what they are entitled to, while fulfilling its obligations. The agency is available 7 days a week, and can access policies online in the event of a claim. Because of its stellar relationships with its carriers, HCI can design efficient, effective claims management processes and works hands on to help reduce the cost of risk and streamline the administrative process. The staff is divided into two teams to make certain that someone will be available to assist anyone who needs help.
Then and now
Cotton's father founded HCI in 1948, after becoming attracted to the industry when he took over his father's insurance business after his sudden death. The day before Cotton enlisted in the Marine Corps, his father told him that out of his 5 children, he was the most likely to succeed in the insurance business. Instead of joining the Marine Corps, Cotton attended Florida State University and earned a degree in risk management. In 1999, Cotton succeeded ownership of HCI, and has been sole manager ever since.
With 60 percent of commercial business and 40 percent in personal lines business, and specialties in auto dealers, boat dealers and marinas, moving and storage, fire sprinkler contractors, churches and manufacturing, HCI has an annual premium volume of $20 million.
"These industries have unique exposures, requiring an understanding of their business, contracts, processes and terms of art," Cotton said. "We have performed risk management and consulting services as requested, but we have offered expert witness services for more than 20 years, limiting our practice to insurance agent and insurance company defense."
To better serve its clients' needs, HCI has added Nationwide/Allied and MAPFRE insurance companies. Nationwide/Allied has converted from a captive agency system to an independent agency system in Florida due largely to the difficulties in the property market. They have selected a few independent commercial lines agencies to provide opportunities to write more commercial accounts. HCI added MAPFRE to support HCI's Hispanic business initiative, since about 40 percent of the metropolitan area speaks English as a second language.
HCI works with FSU's risk management department to identify graduates with an interest in entering the field, along with high schools and community colleges to identify employee candidates who may not wish or have the opportunity to obtain a 4-year degree when hiring staff members. It has developed several temporary employees into fully licensed agents and CSRs. Through continued education and knowledge, HCI seeks to better serve its customers with its highly qualified employees.
Producer training is conducted in-house using a training manual created by Cotton. The in-house training is supplemented by sending new producers to a sales training program offered by FAIA, the state agent association, as well as required enrollment in the CIC program. HCI stresses education, and every employee holds at least one professional designation, including the receptionist and accounting staff.
Looking ahead
During the hard economic times, HCI has become active in the growing Hispanic community, and has established a relationship with a nationally syndicated radio program with provides direct leads to the agency. It has also partnered with reputable insurance companies that offer competitive premiums, which allow HCI to capture new business leads.
Through these partnerships, HCI has been able to offer cost-effective solutions to new and existing clients. HCI is investing in the future by taking care of its customers. HCI focuses on its loyalty to clients and what will help business with the market turns up again.
In the future, "I would like to achieve an equal balance between our three profit centers and maintain double-digit growth in profitability," Cotton said.
At one time there were five Cottons working in the agency, and now there is only one. The perpetuation plan for HCI is still being discussed.
"How and to whom I plan to transition the agency to in 15 to 20 years has not yet been determined," Cotton said. "If my children show an interest and aptitude, I'll include them. Otherwise, I would prefer to sell internally, but if interest or the financial wherewithal isn't there, we'll consider an outside sale."
Related: Read agency profile on Insurance Office of America.
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