Ever feel like maybe you’re overpaying for your business insurance? Not quite sure what to do or how to find out?
You’re not alone, and in this video and post, I’m going to address this question and give you some suggestions, coming right up.
Okay, you’re feeling like your business insurance costs are high or getting out of hand, what do you do?
I think the first step is to contact your current agent or broker, whether you have a good relationship or not.
Contact them and tell them how you feel and what they think.
Have premiums risen? Are they out of line? Have they tested the market in the past couple of years to make sure you’re priced competitively?
Have they had conversations in the past about a strategic renewal process? Have you seen options in the past?
This is the job of a skilled broker.
They proactively seek out the best options for their clients.
Now that doesn’t necessarily mean they shop the market every year or move your account to a different insurer every couple of years.
These steps may not be strategic or in your best interest.
Depending on how your insurance broker responds will determine your next steps.
If they jump into action, then great. Work with them to be sure you’re well served.
But, if there’s a lack of interest on their part, it may be time to find a broker who does have an interest in your account and wants to work with you to get the best coverage and pricing.
My suggestion as a first step in working with a new broker is to find ONE broker to work with – getting multiple brokers involved in a shopping exercise never ends well and is not in your best interest.
You can see more about that in this video – Why Quoting or Shopping Your Commercial Insurance is Ineffective
The next step should focus on the quality insurance coverage, and I can’t emphasize this enough.
Getting a new broker to quote you a lower premium for a coverage program that’s inferior and leaves you open to uncovered claims does you no good.
You should be asking your new broker to first audit your policies for accuracy and make recommendations to fill in gaps left by your old broker.
Once that process is done, then you should review your loss history.
Are you paying more because your claim history isn’t so good?
If that’s the case, going and shopping at the market may be an exercise in futility.
Maybe what you need is a good conversation about risk control and how to reduce claims – which will reduce your premiums down the road.
If claims aren’t a problem and the quality of your coverage was good – then the conversation should turn to the pricing.
What does your new insurance broker think? Is there fat here that may be reduced if you shop the market?
How can you maximize cost reductions beyond competitive bidding? Are there errors in the rating factors or experience rating modifiers?
You should be thinking of this as a long-term strategy – yes, you want to save money today, but a bigger question is how do you get lower insurance costs below your peer group?
How do you gain a competitive advantage?
These are the questions a skilled broker can answer for you and help you with.
Here’s the bottom line.
If you feel like you’re overpaying for business insurance, be curious. Ask an expert what they think.
How can you find cost reductions now and over the long term? How can you make sure you’ve got the right protection?
Who is going to help you reduce risk in your company which will lead to claim reductions and then premium reductions?
These are the questions and issues that need to be addressed.
Blasting your account out to 2 or 3 brokers is not the right strategy to reduce costs.
Business insurance is complex, but it doesn’t need to be opaque or confusing.
Let me help show you how our process works so you feel more confident in your protection and the price you pay for it.
Give me a call or drop me an email.
I promise, no hardcore selling or pushy gimmicks – just a conversation to see if we might be a good fit for your business insurance needs.