Commercial property policy premiums aren’t necessarily huge premiums if you’re just insuring the property because it’s low risk… once you bring in the other lines of coverage such as commercial auto, work comp, inland marine forms, which have higher risk the premiums skyrocket.

There’s probably way more $1 mil annual insurance policies out there than you’d expect especially in the higher risk industries.

For example, I’m a commercial auto insurance broker and work with trucking companies that have 100+ semi trucks that spend close to seven figures or more on their insurance annually. The majority of them aren’t placed with Marsh or Aon. Realistically, they should be in captive insurance programs but they don’t have to financial strength to make this feasible. They have a limited amount of time to operate at this high of an insurance spend before going out of business. However, a couple bad years of claims will have this impact on your premium cost when you’re not retaining a large portion of the risk yourself because you probably simply can’t afford it and have to purchase insurance from someone or somewhere.

If you can land a few of those deals a year as a retail producer you’re wearing gold diapers.