What? Was that the earth moving? Did this erstwhile prophet of profitable forms perusal actually admit there is worthy and valuable knowledge obtainable beyond the sacred texts? Yea, verily, grasshopper, tis true. In a forum entitled “Policy Issues”, it would seem clear that fertile ground of wealth be the focus, especially when that garden of fruitful facts is so often overlooked by far too many. Yet even the most fervent believer in forms recognizes there may be value in a broader outlook, or, as certain practitioners of the self-improvement arts used to opine, a more “holistic” perception. Anderson Cooper succinctly reduced the metaphor to a simple number—360.

Purely for discussion purposes, let's say of the total 360 of valuable agent knowledge, coverage forms represent 270. I now suggest an addition representing perhaps a further 45—carrier prospect/client studies of actual insurance purchasers. Away with speculation, perceived market wisdom and the dreaded yet often over utilized common knowledge. What are actual insurance consumers buying, and what opportunities does that reveal for our value-enhancing, E&O minimizing astute agent?

For purposes of this single column, permit me to illustrate with but one excellent example among many, pertaining to a specific segment of buyers responding about a particular subset of coverage products: The Chubb Group's 2013 Private Company Risk Survey.

Updated every two or three years, Chubb surveyed 450 private company decision makers about their experiences, plans, insurance purchases and claims regarding several key management/executive exposures: D&O; EPL; E&O; employee fraud; cyber crime and cyber liability; fiduciary liability; and workplace violence. A free executive summary—Worth the Risk? Highlights from the Chubb 2013 Private Company Risk Survey—is available for download.

Agents who consider these coverages a key portion of their expertise and/or chosen market niche will find digging deep into the full study fascinating. For the rest of us, Chubb has made available several colorful infographics summarizing key findings. These offer great potential to any astute practitioner of the insurance arts who is looking for potential gaps in consumer knowledge which create opportunities to increase their level of value and service to clients and prospects, all while lowering E&O exposure.

Or perhaps you would just plain love more chances to cut some current, more oblivious competitors off at the knees.

One set of such potentially valuable data really jumped out at me as I first discovered the survey in 2010, and when the 2013 arrived I quickly turned to the same data to discover if it had been a momentary aberration or a trend worthy of agent exploitation. It's no aberration. Chubb clearly saw the same “disconnect equals opportunity” because it is a key highlight of one of their infographics, descriptively entitled “GL Insurance: General Liability is 'must have' coverage—but only one piece of the puzzle.” It also confirms how even those who actually know a great deal about coverage specifics can miss a major part of the overall 360-degree picture if that is its entire focus.

The infographic details the answers to the following survey question: “Does your company have insurance coverage for D&O liability? Fiduciary liability? E&O liability? Cyber liability? Employment practices liability?” Following a brief summary of what a GL policy likely does or doesn't insure, the graphic gets to the heart of the matter: The common misconceptions and/or flat out ignorance of those common inclusions and exclusions as they relate to the surveyed coverages. It is no hyperbole to describe some of the findings as simply shocking. And while a degree of disconnect may be expected with small “mom and pop” size accounts, keep in mind Chubb's responders represented companies that ranged in size from just a few to hundreds of employees, and up to hundreds of millions in revenue.

First, the obvious opportunity: The percentage of these companies who have purchased these crucial coverages is surprising small.

• D&O: 28%
• EPL: 30%
• E&O (for those who needed it): 27%
• Fiduciary: 26%
• Cyber: 5%

But here is the shocker. Why haven't they purchased these coverages? While you might expect price or traditional procrastination to be the main culprits, it turns out there is one key reason that encapsulates everything we've been discussing about seemingly sharp agents leaving huge opportunities on the table—in this case, basic coverage explanations. Here is why many survey respondents claimed they failed to buy key protection: Because they thought they already had it!

Or as the infographic puts it, “Non-purchasers who think this risk is insured under their GL policy”:

• D&O: 65%
• EPL: 60%
• E&O: 52%
• Fiduciary: 51%
• Cyber: 39%

As the texters say, OMG! Is it an exaggeration to surmise that a major business that has failed to purchase crucial coverage because they thought they already had it might just be interested in purchasing same when they find out they don't? Ya think?

I hate to assume the type of agents who would be capable of writing accounts of this size would be that clueless. Why would they be willing to risk that much E&O when the claim comes, or simply willing to leave that much opportunity and potential revenue on the table? But a huge percentage did, if you review those numbers.

Now do you see why I believe if you take your coverage expertise, and add some amount of strategic knowledge beyond the forms, your more holistic view of those fields white unto harvest just expanded your opportunities exponentially? Ah grasshopper, the places you will go and the businesses you will serve. Perhaps you will even earn a variation of the proverb: Your clients will rise up and call you blessed, and your E&O carrier also shall praise you.

Your fields await. With a nod to another of May's milestones, Ladies and Gentlemen—start your reapers!

Chris Amrhein, AAI, is an insurance educator and speaker with more than 30 years in the industry. He also is the chief fun officer at insuranceisfun.com, and author of “Yes Virginia, There is Insurance.”