- Asking for a “quote” sometimes is based on your current program parameters. Good agents match a program to what is needed after a diagnosis – the types and amounts of coverage among the many “lines” of insurance. Get the quote but ask for suggestions.
- Obtaining the best proposal requires a full disclosure of what you do, where, how well, how much, with whom (expertise of our workers). Don’t hold back. Getting a solid proposal is like getting good terms on a loan, since you are asking a carrier to put up substantial limits of insurance. Convince that carrier that you deserve a great program; have them sign an NDA if it helps (professional agents will have no issue executing an NDA).
- If an agent mentions “cyber liability,” consider moving along. Most cyber claims are not liability claims, but claims related to ransom, fees/penalties, loss of revenue, notification costs to people effected. And every policy form is different. Many carriers will test the security and viability of your IT systems at no additional cost – it’s part of their underwriting process. Are you getting that? This is a complicated issue and requires expertise to a level not met by many agents.
- Agents make money by commission in most cases. Commission is only earned when the agent wins the account; understanding that element gives an advantage, as time is money. If you are obtaining an option to “keep your current agent honest,” a good prospective agent will move along.
- Commissions average 11-12% of premium, depending on the mix of policies. The agency receives that percentage; the agent gets a portion of that – sometimes half in year one, 25% of that in subsequent years. If your program is about $200,000 or more, ask about a fee in lieu of commission. Everything is negotiable.
By implementing these tips, business owners can navigate the insurance market with confidence, ensuring a robust Commercial Property & Casualty insurance program that not only meets regulatory requirements but also safeguards against unforeseen risks. Save time, money, and aggravation by approaching your insurance decisions with informed and strategic considerations.
To learn more maximizing your savings while maximizing your insurance coverage, reach out to an agent at Diversified for more information. DII is your partner in all things Insurance regardless of the size of your business. Our team of experts can work with you to the best partnership options for your companies interests and needs. Please contact your DII representative for more information. #OptionsforP&C #Getbestproposal #Negotiable
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