Changing workers' comp markets

Recent changes in the demand for workers’ compensation insurance may have eroded your agency’s bottom line. One solution to increase your agency’s revenues and connect with businesses that need your services is to expand into different markets. You can specialize in one or two industries. That way, you can finetune your services for a particular niche, and your customers will be more likely to recommend you to others in their line of work. Alternatively, you can diversify to several industries, in which case you’ll be better shielded from individual industry impacts. 

Ultimately, you must decide which market approach is best for your agency. As you research which markets to pursue, consider these 5 industries with a high demand for workers’ compensation coverage

Workers’ compensation markets for insurance agents

1. Construction

From plumbers and electricians, to artisan contractors and interior painters, there are various opportunities in the construction industry for insurance agents. With nearly 733,000 construction businesses that employ over 7 million individuals in the U.S., this is a promising market for agents (AGC). Employers in the construction industry need workers’ comp coverage to protect their business and their workers from risks like falling debris, ladder falls, explosions, burns, and electrocution. Moreover, workers’ compensation insurance is vital for the construction market—as many clients won’t work with contractors or subcontractors unless they show proof of insurance.

2. Landscaping

There are nearly 604,000 landscaping businesses that employ 1 million people in the U.S., making this an ideal market for insurance agents (NALP). Employee activities include laying sod, seeding, planning, clearing, grading, planting, fertilizing, mowing grass, and maintaining the landscape. With risks for injury from falling branches, heat exposure, hazardous noise, landscaping equipment, chemical exposure, and the like, workers’ compensation coverage is essential for the landscaping industry. To help protect their employees and get adequate coverage, landscaping employers need informed, educated insurance agents they can trust.

3. Trucking and transport

Nearly 500,000 trucking companies and 8 million people are employed in the trucking and transportation industry (ATA). This industry employs drivers, movers, dispatchers, couriers, warehouse workers, forklift operators, and more. Common injuries in this industry include strains, sprains, cuts, bruises, and fractures from overexertion, being struck by an object, falling, or being in a vehicular accident. Because truckers travel across state lines, workers’ compensation insurance can be more complicated for the industry. This makes it a great niche opportunity for agents looking to specialize and offer expertise.

4. Janitorial and Cleaning

The janitorial and cleaning market is huge, with nearly 1.1 million businesses and 2.8 million people working in the industry (IBIS). The field includes janitors, maids, house cleaners, commercial cleaners, carpet cleaners, upholstery cleaners, chimney sweeps, disaster cleaning and restoration specialists, window cleaners, pressure washers, school cleaners, and medical cleaners. Risks to these employees can include chemical exposure, blood borne pathogens, repetitive motions, sprains, strains, slips, trips, falls, heavy lifting, ladder falls, and power tool injuries. If you specialize in this market, your clients may appreciate educational resources about how to train employees on safe cleaning practices and how to prevent injuries at work.

5. Manufacturing

You might also consider specializing in the manufacturing industry, with nearly 600,000 businesses and more than 12.8 million employees in the U.S. (IBIS) (NAM). People who work in manufacturing include mechanical engineers, instrument technicians, plant operators, machine operators, assembly line workers, fabricators, metal workers, painting and coating workers, quality control inspectors, welders, and more. On the job risks to manufacturing employees include equipment accidents, overexertion, contact with objects, fires, explosions, falls, slips, trips, sprains, fractures, burns, chemical exposure, and the like. There is great demand for workers’ compensation protection in this industry, making it a promising market if you wish to specialize.

When you do select a market, learn all you can about the intricacies of the particular industry and tune in to how you can satisfy clients’ needs through your specialized insurance product offerings. Be sure to work with insurance carriers who have the interest, experience, and drive to work with your niche industry so you can offer your clients the best coverage possible.

Thanks for reading our educational resource! Any above reference to a specific company, method, or product is meant for educational purposes only and is not specifically endorsed by Pie.