In preparing our new “Broker Spotlight” feature each month, we’ve been speaking to several of our top insurance brokers, who specialize in everything from homeowners’ policies to business insurance. And we are discovering that many of their customers still have questions about Paid Family Leave. The answers to these questions spark further discussions with their clients about other business insurance, including New York State-mandated DBL (Disability Benefits Law) coverage.
Some small business owners don’t know that they are not in compliance and could be subject to fines. They are running a business in New York with more than one employee and are missing an important business insurance line; they don’t have DBL coverage.
Others provide the state-mandated minimum benefit coverage limits to their employees, but don’t realize how affordable it is to enhance their employee benefits package with enriched DBL.
And yet, many insurance brokers don’t talk about DBL as much as they should. They fail to market DBL alongside their other lines of business insurance. Why not use DBL to expand your book of business, actively selling this mandatory benefit to employers (that is, your existing customers, as well as new ones) who didn’t know they needed it?
Every New York business owner with at least one employee who has worked full-time for a covered employer for four consecutive weeks or has worked part-time for a covered employer for 25 business day, is required to purchase a DBL policy covering those employees.
Additionally, previously covered employees returning to work after being on unemployment are eligible for DBL coverage. Finally, business owners who employ personal or domestic in-home workers (such as nannies, home health aides, housekeepers, and other staff) for at least 40 hours per week must provide DBL coverage.
As an agent, this means every day you could be talking to employers requiring a DBL policy along with their other business insurance policies. Those employers have the choice to purchase DBL coverage through the New York State Insurance Fund (NYSIF) or through you, their trusted insurance broker.
With the right tools and resources in place, it is easy to sell DBL coverage. (You’re talking to the pros here, after all.)
Even brokers who focus on homeowners’ insurance, umbrella policies, and other personal insurance lines should talk about DBL to their customers who own businesses operating in New York State. If you are writing high value home insurance policies, umbrella policies, even boating insurance, those clients may be business owners or have full-time domestic help eligible for DBL coverage.
If you are writing health insurance, ancillary benefits, E&O policies, property insurance, auto insurance for business vehicles, worker’s compensation, or any other type of business insurance, you should make sure your customer has their state-mandated DBL requirements covered. If they do, it’s time to get them thinking about enriched DBL.
Take the First Step to Sell DBL with Other Business Insurance
It’s important to make NY State DBL coverage part of every conversation you have with new customers. Devote a page on your website to the basics of DBL coverage, which will give you a place to direct employers to gain the knowledge they need.
Even with the media coverage PFL received in the insurance trades, on premier carrier websites, and in business publications, New Yorkers may still not be aware of the new benefit and how it affects DBL coverage as a rider to existing policies. Make sure to mention DBL and PFL when people ask about your various personal and business insurance lines and open the door to a conversation.
DBL coverage and the new PFL benefits give brokers an opportunity to share their insider knowledge, educate customers, and expand their book of business with a policy that renews, almost without a second thought, year after year.
Want to make writing DBL coverage even easier? Ask us how our new Net Revenue Tracker can help you manage policies and measure and improve profitability for your insurance agency.
by Michael Cohen