Evaluating Your Need for Business Owner Insurance

When does a business know whether to shop for a new insurer or just stick with same carrier and same insurance coverage? You should search for more competitive business owner insurance quotes on insurance in a few key instances discussed below.

Three Year Review Window to Assess Commercial Insurance Providers
An expected part of the job for you insurance broker would be to send renewal applications for your business out to at least three insurers other than your currant insurance provider.  This should be standard practice every three years. Out of courtesy (and as a motivator) to your current insurance company, the insurance broker should notify your current insurer that your renewal has been “marketed.”

This notification should prod the underwriter to review your business needs and risks by examining all available data to find ways to drop your premiums, or inform you of new coverage opportunities. You may also have the good fortune of discovering, by this review method, a new insurance provider who has joined the market offering to write policies and offer coverage that specifically matches your business. You may find that specialized insurers such as this may offer a deeply-discounted insurance quote just to get businesses like yours on board.

Improved or Stabilized Loss Trends
An insurance company may add surcharges if a business suffers big losses within the past five years. However, if your business shows significant improvement regarding those loss trends because of aggressive control efforts, a different insurance company might prove to be more workable with removing surcharges because of the history of loss improvement and the measures for loss control that you have implemented. You’re current insurer, however, may want to retain you badly enough that the underwriter could aggressively work to remove surcharges because of efforts at controlling losses

Business Scope or Size Changes
Economic forces may have caused your business to shrink or grow over the past year and make it eligible for optional insurance policies and programs which may offer better rates. For example, if your fleet of automobiles has grown, you may qualify for fleet discounts presented by a different insurance company from your current carrier. This concept also applies to policies regarding workers compensation and general liability rates. On the other hand, if business has scaled back for you, it may now qualify for a small or medium size business policy which will be much cheaper than the typical commercial insurance policy package.

Insurance for New Business Operations or Ventures
If you have launched a new business model or enterprise in the last year, you may have reported these new measures to your carrier, and if not you should. In this case, your new venture may quality your whole account to be eligible to participate in a different insurance policy through another insurance provider which may give better overall rates for your business operations and resources. Various insurance companies specialize in a variety of business operations types; so verify that your insurance company prefers or specializes in writing insurance for the subsidiaries and divisions your company includes.

You should have a good working relationship with your insurance agent so you can discuss your concerns regarding insurance premiums, loss trends, or other causes for rate increases.  Discuss current lawsuit and insurance trends with others who work in your industry to see if your umbrella is big enough.  Consistent communication with your commercial insurance agent allows him or her to serve your needs best throughout the renewal process.