Quotes that Bite

“I would say unequivocally, that the quoting process is ‘point critical’ for any business owner looking for insurance.”

Ken Colquhoun,
Partner Excalibur Insurance

When it comes to commercial insurance, the majority of insurance companies are geared towards skimming the cream. It’s not a bad thing, just a fact. More specifically, they want only the best businesses in their commercial portfolios. In a perfect world that would be low risk, high premium.

That said, taking a traditional approach to quoting where you fill out an application and submit it to a company – no longer puts businesses in the top tier for premium rates. Taking a traditional approach may be more common than you think because it requires less work on the part of the broker. That traditional mindset, or approach produces ‘quotes that bite’.

The alternative? You need a broker with a well-defined and effective Placement Strategy when it comes to packaging and presenting quotes to insurers. Often times with a little work, the business case for reducing rates or improving coverage lies in the work and collaboration upfront, between the insurance broker and the business owner. Businesses need to look like an attractive risk to get multiple companies interested in carrying them in their portfolio.

In terms of the process, the renewal is just as important. Business owners need to partner with a broker who takes the same approach with their renewal. Think about it this way – typically renewal rates are always going up, not down. In order to get ahead of that reality your broker needs to do some work.

In a nutshell, your ‘90 Days Out’ business insurance renewal process should involve:

1. 90 Days Out – Your broker initiates a risk and coverage review strategy.
2. 60 Days Out – Your broker shares information, coverage options and provide a path forward proposal.
3. 30 Days Out – Your broker negotiates coverage and rates on your behalf and presents options.
4. Renewal Date – Bind coverage with chosen insurer, and policy is delivered.

You work hard as a business owner, are your partners doing the same?

Or are you getting a ‘quote that bites’.