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  • Insurance Sales

    We are required to tell our customers they have to have insurance, either self insured ( they have to provide proof) or we sign them up at time of rental. We offer the option of signing up for insurance through a 3rd party company, well known to the storage industry. As far as I know- we do not receive any compensation or commission for these sales, but I am wondering about the legality of it. None of our managers are licensed insurance agents, and according to a Google search under licensing requirements for selling insurance it says: "under Washington law, anyone who knowingly sells, solicits, or negotiates insurance without the proper state license is guilty of a Class B felony, which can carry a prison sentence of up to 10 years, as well as a civil penalty of up to $25,000 for each violation."
    SO I guess my question is, how do we, as employees of a property management company who manages storage facilities skirt around that requirement? Im asking because we now have representatives from that insurance company coming out to out stores to train us on how to present their insurance to the customers. Im not so sure I am comfortable with that. Am I overlooking something obvious here? Anyone have any advice on this? Or is this perfectly legal and I am over reacting?
    You Laugh, I laugh. You cry, I cry. You take my coffee...may God have mercy on your soul....

  • #2
    We don't require any insurance here, but I am interested in an answer as well.

    Comment


    • #3
      When I have set up insurance at different properties, part of the setup is applying to the state, and then basic training from the insurance carrier. We are not full agents, but have a limited license to set the customers up with their policies.

      That training that you have coming is exactly what the insurance companies are required to do for those that offer their products.
      Last edited by MamaDuke; 13 November 2019, 04:47 PM.
      MamaDuke

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      • #4
        Originally posted by wc1974 View Post
        We are required to tell our customers they have to have insurance, either self insured ( they have to provide proof) or we sign them up at time of rental. We offer the option of signing up for insurance through a 3rd party company, well known to the storage industry. As far as I know- we do not receive any compensation or commission for these sales, but I am wondering about the legality of it. None of our managers are licensed insurance agents, and according to a Google search under licensing requirements for selling insurance it says: "under Washington law, anyone who knowingly sells, solicits, or negotiates insurance without the proper state license is guilty of a Class B felony, which can carry a prison sentence of up to 10 years, as well as a civil penalty of up to $25,000 for each violation."
        SO I guess my question is, how do we, as employees of a property management company who manages storage facilities skirt around that requirement? Im asking because we now have representatives from that insurance company coming out to out stores to train us on how to present their insurance to the customers. Im not so sure I am comfortable with that. Am I overlooking something obvious here? Anyone have any advice on this? Or is this perfectly legal and I am over reacting?
        We're not licensed but there is a loophole that lets us 'offer' (I'm not sure of the exact term, but we're definitely not licensed salespeople) insurance. It's probably why we're having training again on it.

        There was a big hullabaloo a few years ago, when I was manager in San Diego and it had to get clarified because insurance companies were complaining/suing about it.
        Even duct-tape can't fix stupid. But it can muffle the noises.

        WA State

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        • #5
          Here is what I found on line for Washington State: https://app.leg.wa.gov/rcw/default.aspx?cite=48.170

          Your insurance provider will make sure that your owner is compliant. They are not allowed to offer the product to you if you are not.

          I had asked for some marketing material to go ahead and distribute at one of my locations in Florida, however I was denied that until my license had been issued (it had been applied for and paid for). I am happy to say I am licensed in Florida now.
          Last edited by MusicCity Gal; 13 November 2019, 05:50 PM.
          Stephanie Tharpe
          President
          A+ Management Group, LP
          Nashville, TN
          www.aplusmanagementgroup.com
          615.288.2162

          TNSSA Board of Directors
          www.tnssa.net

          Comment


          • #6
            Originally posted by MamaDuke View Post
            When I have set up insurance at different properties, part of the setup is applying to the state, and then basic training from the insurance carrier. We are not full agents, but have a limited license to set the customers up with their policies.

            That training that you have coming is exactly what the insurance companies are required to do for those that offer their products.
            This is correct. Your employer is required to apply for licensure and employees are trained through the insurance company. Some do in-person training and others do a webinar.

            Comment


            • #7
              Originally posted by MusicCity Gal View Post
              Here is what I found on line for Washington State: https://app.leg.wa.gov/rcw/default.aspx?cite=48.170

              You insurance provider will make sure that your owner is compliant. They are not allowed to offer the product to you if you are not.

              I had asked for some marketing material to go ahead and distribute at one of my locations in Florida, however I was denied that until my license had been issued (it had been applied for and paid for). I am happy to say I am licensed in Florida now.
              An interesting read.
              Even duct-tape can't fix stupid. But it can muffle the noises.

              WA State

              Comment


              • #8
                Originally posted by MusicCity Gal View Post
                Here is what I found on line for Washington State: https://app.leg.wa.gov/rcw/default.aspx?cite=48.170

                You insurance provider will make sure that your owner is compliant. They are not allowed to offer the product to you if you are not.

                I had asked for some marketing material to go ahead and distribute at one of my locations in Florida, however I was denied that until my license had been issued (it had been applied for and paid for). I am happy to say I am licensed in Florida now.
                Thank You Music City Gal, that helps a lot! I need to print out those insurance RCW's and add them to out Binder of other Storage RCW information for future reference. This is why I love this forum- I feel like I should have known the answer to that after 8 years of experience but, hey, now I do! So Thanks again!
                You Laugh, I laugh. You cry, I cry. You take my coffee...may God have mercy on your soul....

                Comment


                • #9
                  Originally posted by wc1974 View Post

                  Thank You Music City Gal, that helps a lot! I need to print out those insurance RCW's and add them to out Binder of other Storage RCW information for future reference. This is why I love this forum- I feel like I should have known the answer to that after 8 years of experience but, hey, now I do! So Thanks again!
                  wc1974 My pleasure!!
                  Stephanie Tharpe
                  President
                  A+ Management Group, LP
                  Nashville, TN
                  www.aplusmanagementgroup.com
                  615.288.2162

                  TNSSA Board of Directors
                  www.tnssa.net

                  Comment


                  • #10
                    I am in NJ we offer "protection" from an outside vendor and we do "require" that all of our tenants have some form of PROTECTION, either their own homeowners/apartment insurance or our outside vendor's protection policy.
                    Don't put off until tomorrow, what you can do today.

                    Comment


                    • #11
                      Handy article that covers the basics: https://www.insideselfstorage.com/in...otection-plans

                      Comment


                      • #12
                        Originally posted by lady5563 View Post
                        I am in NJ we offer "protection" from an outside vendor and we do "require" that all of our tenants have some form of PROTECTION, either their own homeowners/apartment insurance or our outside vendor's protection policy.
                        We are looking into protection plans as well. It's pretty cut and dry, so we don't have to try to explain since we aren't insurance agents. Seems like it is a pretty lucrative option.

                        Comment


                        • #13
                          When we started offering SafeStor Insurance we were not required to do any additional licensing with the state of Iowa.

                          From my understanding is I am just offering their product, and if you have an insurance related question about the plans we provide a flyer with an 800 number for the company.

                          Comment


                          • #14
                            Been doing this for 8 years, used 4 different insurance/protection plans in that time. I've always been trained and trained others if someone wants to dig in to the policy details, direct them to the actual company as we are not licensed insurance agents. Of all the companies i've dealt with Storsmart is the only one who's ever actually been "involved" and seemed to care. They send a person out to the site no matter where you are to actually set you up, go over training, proper things you can/can't say and so on. I've had the same guy come out to a site in Tx then come out to our sites with the new company in Ca so it's not some random person they send out without knowledge either.

                            Comment


                            • #15
                              Does anyone know of an insurance company that covers water damage or rodent issues? I have seen several protection programs, but so far haven't found an insurance program.

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