Here’s a simple strategy that will improve the quality of your business’s risk management (and may save you significant sums in the process):
For each insurer willing to quote your business’s insurance, you need to find out which agency/broker has the strongest possible relationship with that insurer and leverage that relationship in your favor.
Put simply, if Broker A has the strongest relationship with Insurer A, you want Broker A quoting for you with Insurer A.
If Broker A does not have the strongest relationship with Insurer B, find out which agency/broker does and have them quote Insurer B for your business.
Having one broker/agency quote for your business with every insurance company to whom they can send applications may mean your business misses out on potentially stellar quotes with better coverage, more of it, and for less premium.
The real kicker of using the traditional (and most popular) single-broker approach is that you won’t have a clue that where your broker got declined by Insurer A, another broker would have gotten an amazing quote based upon the strength of that broker’s relationship with Insurer A.
Be sure each participating agency is quoting apples to apples (same limits of insurance, exposures, etc.)
When you apply, ask for the very broadest coverage terms available for every line of insurance you are purchasing right up front.
In addition, be sure to ask every agency for a specimen copy of the “applicable coverage forms” for each quote they supply.
This way, you’ll get to read the specific coverage terms, limitations, and the host of exclusions that will apply BEFORE you buy a policy and can bail if the insurer quoting is unwilling to offer you reasonable terms.
Last, respect each broker’s work and do not allow one broker to benefit from another broker’s efforts.
The brokers willing to quote for you have worked diligently to get where they are, and if your business is benefitting from that broker’s relationships be sure they do not feel as though they’re simply being used.
To Your Success,