AN ISSUE I've long heard discussed by new producers and veterans alike is when and why to walk away from a prospect. I'd like to share with you some key factors to consider when making this often-difficult decision, and also suggest what to say once you decide it's best to move on. Remember that the best time to lose a sale is the first moment you realize it's not your sale. Be honest with yourself–your agency and company underwriters can't afford to practice quote.

There are several reasons to walk away. First, the account may have a poor claims history. Suppose that, like many producers, you go to that first appointment with a prospect. Everything's going well, you're building great rapport and you start firing questions at your prospect to uncover some issues. You get enough positive feedback to proceed, so you ask for loss information. Bam! There it is–the worst claims history you've ever seen. Although you realize this account might be tough to place, it's also large, and you're sure you can do it.

You need to discuss the claims with your prospect and find out the history behind them. Does a pattern suggest unsafe working conditions or practices? Is the equipment, building or other property in poor condition? Or were most of the claims just flukes? After all, a business can experience claims resulting from a string of bad luck.