| The burden insurance costs place on your bottom line demands you pay attention to them. Pricing can be surprisingly volatile. Defend yourself against paying too much by shopping every year. This helps guard against shocking price hikes also. You may not appreciate how vulnerable you are to an unstable insurance marketplace, which can suddenly deliver painful premium increases or lack of coverage availability. Guard against unpredictable decisions and actions of insurance companies and agencies. Remember, these firms focus on maximizing their profit, not yours.
Develop solid alternatives before a crisis comes, so you are ready to change course any time. Pricing for contractor insurance is unstable, and it is possible to overpay double or more, compared to the best possible price. It is amazing how widely different prices are quoted from the same set of quote specifications sent through different channels. Often, it is hard to believe that the quoting insurance companies are all looking at the same account. This broad variation in pricing is seldom seen in any industry other than commercial insurance.
Shopping your account helps you increase the odds of being insured if a loss occurs. Just like getting a second opinion from a doctor, having several competent agents look over your exposures and recommend coverages can prove worthwhile. Most coverage packages can be improved, and a second agent hoping to win your account may be more alert and innovative with coverage suggestions. For instance, you may find your premium dollar can be better applied to meet your objectives through some coverage changes. Many businesses are purchasing coverages for exposures they could easily handle without insurance, while being exposed to hazards that could ruin them.
Accumulate valuable negotiating power from getting multiple alternative quotations. Power comes from having various solid quotations in hand, enabling you to select whoever you want to handle your account. You can reveal to your broker you have a more competitive quotation in hand. Watch as the agency scrambles to find new ways to lower its current quote and offer you new and improved services. If the agency does not try to get you a lower quote or better service, maybe it is time you change agencies anyway. Since you have the necessary alternate quotes, you can do so quickly and conveniently. Having concrete alternatives puts you in the driver's seat when the time comes to negotiate your renewal. Most businesses should regularly shop their insurance for many valuable reasons. Even when you are getting excellent service, it pays to have your agency's work regularly inspected by other agencies. You can remain satisfied with your favorite agent, while you maintain a focus on your competitive position. For instance, you may make a tough decision to save money by purchasing your insurance this year from your agent's competitor. At least when the time arrives, your former agent may be motivated to do everything possible to win you back.
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