May 10
29
Is It Time To Shop for a New Commercial Insurance Quote?
As with all insurance policies, it is a good idea to shop around for new commercial insurance quote from time to time. It is not a good idea to shop your commercial insurance every year because underwriters get tired of seeing the same insurance applications every year without winning the new business. If an underwriter thinks there is no chance of writing an account, he or she may not work as hard to find every discount.
So when should a business shop and when should the business let the insurance coverage renew with the same insurance carrier? There are a few situations which should trigger your search for more competitive insurance quotes.
Shopping for Commercial Insurance: The Three Year Window
Your insurance broker should submit your renewal applications to no less than three other insurance companies every three years as a matter of practice. As a courtesy to your renewing insurance company, your insurance broker will most likely advise your current carrier that day will be marketing your renewal. This will motivate an underwriter to carefully review your business risks thoroughly checking for new ways to lower your premiums. It may also be the case that a new insurance carrier has entered the market looking to write insurance policies that match your business. As such, they may be willing to offer a deeply discounted commercial insurance quote to win your business.
Improvement in Commercial Insurance Lost Trends
If your company has suffered from some big losses in the past five years but have shown significant improvement in the lost trends due to aggressive loss control efforts on your part, another insurance company may be more willing to remove surcharges based on the loss history improvement and the loss control measures that have been implemented. Again, if you’re current insurance company wants to retain your account, the underwriter should work with you aggressively to apply or remove surcharges that have been imposed because of your efforts to control losses
Change In Insurable Business Size or Scope
If your business has grown or shrunk in the past year due to economic forces, you may be eligible for different insurance programs which may have more favorable rates. Larger fleets of automobiles, for example, may be eligible for deeper fleet discounts through another insurance company than through your current the insurance company. This is also true with respect to general liability and workers compensation rates. Likewise, if your business has shrunk, your business may now be eligible for small business owners policy is generally much cheaper than a commercial package insurance policy.
Insuring New Business Ventures or Operations
If you have embarked upon new type of business in the past year, you should have already reported these new business ventures to your current insurance carrier. Nevertheless, your new business venture may make your entire account eligible for different insurance program through another insurance carrier which may have better rates overall for your entire business insurance program. Different insurance companies target different types of business operations; be sure that the insurance company that you are with really likes to write insurance for all the divisions and subsidiaries that your company has.
If you have an insurance agent whom you trust, and you should, discuss your concerns about your insurance premiums, any rate increases, or lost trends so that your insurance agent knows how to best serve your needs during the renewal process. Discuss insurance and lawsuit trends with others in in your industry.
Most insurance companies in almost every state are willing and able to negotiate rates to some degree. You really can negotiate most insurance premiums. If you are not completely satisfied with the commercial insurance quote that you have received, by comparing at least three other quotes and negotiating with your current carrier, you can rest assured that you have secured the best coverage for your business at the best rates available. Don’t wait until the last minute though. Your insurance should be on your mind at least 90 days ahead of your renewal date.
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