DATE: Monday, November 10, 1997             TAG: 9711080597

SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 

TYPE: Small Business Q & A 

SOURCE: BY MELISSA GUNDEL, STAFF WRITER

                                            LENGTH:   72 lines

BEACH COUPLE MAKE SWITCH TO PUBLIC ADJUSTING FIRM

In January, Ed Hanson and his wife Dawn opened Dalmation Adjustments, a home-based independent insurance adjusting firm in Virginia Beach. However, after a rough beginning, Hanson switched his business to a public adjusting firm, which represent insured individuals against their insurance companies. Hanson spent 20 years in the insurance business - the last 10 as a senior field adjuster with Metropolitan Property & Casualty.

What happened in the beginning?

After we opened we started heavy marketing. At the very beginning we did direct mail, personal visits, phone calls, you name it. We didn't get any work for four months. That made it hard until we switched over to the public adjusting.

Were there any other factors on your decision to change to a public adjusting firm?

The economics of it showed it was more profitable and that there was a need for it. Also, we saw need that for that type of representation down here. It's rather prevalent up north and down south. I knew it was needed through research and people coming to me to handle claims for them while we were an independent adjusting firm.

What happened after you switched sides?

We've grown probably 450 percent. It's been a niche in the market that no one else has done over the years. We have very few competitors in this area. It's grown from word of mouth. It's hard to advertise. Trying to find a proper advertising venue has been difficult. The niche you are hitting are those having disasters. It's such an expense to do TV advertising. So we are advertising on the Internet and in the newspaper. It has turned into a rather profitable venture.

What steps did you take to open the business?

I did a business plan. We researched it for about nine months before we did it. We went to SCORE and researched through different independent adjusting firms - some local and the others, up and down the East Coast. When I started the business, I had already purchased our office equipment, fax machines, computers. . . to keep the cost down so we wouldn't have to worry about a large output. By working at the house, we also keep the expenses down.

How do you help the customer?

Most of our work is done at the insured's home or the business. We're available 24 hours a day, seven days a week. I investigate and evaluate the loss, do policy interpretations and negotiate with the insurance company. Customers are paid through the insurance company. The public adjuster is paid by the customer out of the settlement.

What is your biggest challenge right now?

The continual marketing. We're an unknown venture. Historically, public adjusters have had bad reputations. It seemed like they were only out for their own good and not for the insured. They were not always out for customer service. However, we're overcoming that.

What advice would you offer to someone wanting to start a business?

Research everything you can. Think of Murphy's Law because if it can go wrong it will. Make sure your relationships are strong. What you think it's going to cost - double it. Also, pray a lot. MEMO: We're looking for small businesses to share their experiences:

problems they've faced, successes they've achieved. Please fax your

suggestions to Melissa Gundel at 446-2531. ILLUSTRATION: Color photo

Ed Hanson

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