Partner with an Independent Agent
It is always best to partner with an independent insurance agent when purchasing commercial insurance coverage. Especially when you are looking for ways to save on premium. An independent agent can save you an immense amount of time because you do not have to shop your policy around yourself. Most independent agents have the ability to go out and get quotes from multiple carriers for you. They also are privy to which companies are aggressively quoting your particular industry.
Tell your Agent what you Value most
If you are a business owner that wants to get the absolute best protection possible, it is important to let your agent know. If price is what is most important to you, than it is equally important to let them know as well. Independent insurance agents have to speak with a lot of people from a lot of different walks of life. Each of these people have different things they value related tot heir insurance packages. The more information you give your agent about what you value, the more likely you are to be satisfied with what they find for you.
Make sure Your business is classified properly
There are more than 700 classification codes just for workers’ compensation coverage. Each industry has multiple classification codes depending upon the activities of the employees in each individual business. If your business is not classified properly it can cause you to either over pay or underpay your premium throughout the year. Now this mistake usually gets straightened out during the end of term audit, but either way you have been paying the wrong amount throughout they year. This can result in you getting a refund on your premium at the end of the term or owing additional premium. Either way, this is an unpredictable cost to your business.
Ask for all available Credits and Debits
If price is important to you, you should express that to your agent. Also, you should mention to them that you want them to look for all available credits or discounts your business can take advantage of. If you have a well-documented safety program, a return-to-work program, or a safe driver program in place, it is good to mention that to him. They may be able to use this information to negotiate for better price on premium with the carriers they are shopping your policy with.
Selectively Price Shop
IT is always important to shop around your policy to make sure you are getting both the best possible coverage and a competitive rate. At the same time, it is not wise to switch carriers each year based upon a small difference in price. This is because, when a claim does occur your carrier is likely to work with you if this is your first term with them. If you have been with a carrier for multiple years, they are much more likely to work with you after a difficult year if they know they have gotten multiple years worth of premium from you. When the only reason you chose them was because of price, they are much more likely to refuse coverage or raise your rate significantly after a difficult year. If you cannot find coverage on the open market after a difficult year, it may force you to purchase coverage from the state fund which is much more expensive. Once you are in the state fund, most states require you to stay there for a number of years. If this happens to you, you may save a few hundred dollars in premium on the front end, but end up costing your business thousands on the back end if you wind up in the state fund for multiple years.