Crop Insurance What Do Agents Do
October 10th, 2007 by David Graves
What do private agents do to earn their commissions?
It is useful to quote from a private agent, whose comparison of Crop insurance with other forms of insurance follows:
“Many local insurance agents laugh at me and ask why I sell Crop Insurance. They would not consider writing it due to the workload as compared to other forms of insurance, most at equal or higher commissions.
“Life Insurance - One application and claim to file.
“Home Insurance - One application and most without ever having a claim.
“Auto Insurance - One application, occasional vehicle damage, and seldom a claim.
“Crop Insurance - One application, annual renewal, annual acreage report with acres and final plant dates, annual production report, communication with the Farm Service Agency so as to verify certified acres and then amending the acreage report, due to the fact that the government agency does not supply this information by the deadline required by the government for the insured and the insurance company. More claims by far than any other line of insurance. Must coordinate with hail insurance in order to supply 100 percent of the coverage necessary for today’s agricultural producer, as it only supplies a portion of the coverage either desired or required by a third party.
“Not only is the commission equal to or more per sale for other types of insurance, but with the same allotted time and staffing you can sell numerous policies of the other forms of insurance in the time you take on a crop insurance policy.”