California Business and commercial insurance trends as I see the California Insurance Market evolve from the perspective of a independent California commercial insurance broker. Industries I have clients in include non-profits, manufacturing, commercial property owners, technology and software to name a few. I'll be discussing the trends in California Workers Compensation, Property Insurance, E&O, Errors and omissions, Directors and officers, D&O, EPLI, and other coverages
Thursday, November 20, 2008
How to shop for Business Insurance
I have often been asked by business owner's how to shop for business insurance policies. Most recently all of the clients I have picked up here in Southern California have been neglected by their existing brokers and when it comes time for renewal they have had zero contact with their broker. They receive their renewal policies two to three weeks before their renewal and end up having to go with the quote they have been give since the time lines are two short to gather the necessary information and correctly market their insurance needs. This is a very poor sales tactic used by bad agents to leave their clients with only one option when renewals come around.
I always suggest a comprehensive strategy to renewals that should begin ideally ninety days before your insurance renewal. All aspects of your insurance program should be reviewed for gaps in coverage. Your previous broker may not have understood your business as well as they lead you to believe and simply because you had a policy in force does not mean you were properly covered. Most policies start out as a shell and it is your broker responsibility working with the business owner to build out the policy to cover your business, in addition to making sure you are aware of other coverage that may help you shift risk, such as EPLI, Professional Liability, and product liability to name a few.
Loss runs (3 Yearss for GL, 5 Years for workers comp)
Revenue for 5 years
Vin#s and Vehicle information
Employees per job function
You should be discussing with your broker at these annual reviews how your business has changed, increase/decrease in revenue or payroll, new plans to expand, new business you may acquire, employee growth etc. I am always amazed at how many of these questions have never been asked when I am invited in to take over obtaining business policies for my clients. Business owner should also be aware of where their company is being presented and who is representing them. Often a broker with submit a company to all of the insurance companies they have access to with a current or even and old application. We call this "blocking the market" and at the end of the day the client losses when this tactic is used. It is often employed because a prospect has invited in to many brokers to shop his business. Usually the price you receive from one broker will be your price so as a business owner you are much better off choosing one or two good brokers who have a wide variety to markets to approach. This will save you and your broker time and at the end of the process you will not have burned your company name in the eyes of the underwriters.
Again your commercial insurance is extremely important and should be given the time it deserves, the last place you want to find yourself is having to handle a claim on your own instead of having the right coverage in place. If you feel your broker is falling short, I can help contact me here.
