Pick Your Agent First
Does the following scenario sound familiar?
Your commercial insurance coverage is coming up for renewal in 3 – 4 months. Like clockwork, your phone starts ringing off the hook with insurance brokers asking to “quote” your business (how do they all know your renewal date anyway?). You want to be a smart consumer, so you say yes to 3 or 4 of the most promising sounding candidates, which begins a mind-numbing process of time-consuming meetings with brokers, carrier reps touring your facility, brokers requesting access to their favorite carriers, sitting through final presentations, and on and on… And after all is said and done, more often than not you end up staying with your current broker anyway, because everyone comes in at pretty much the same price.
Is there a better approach?
Definitely! Before we discuss that, however, it’s important to understand a few facts about the commercial insurance industry and the brokerage distribution system. Employers who grasp these facts understand that shopping their insurance the old fashioned way, with multiple brokers, is often counterproductive and not the best approach.