Business Insurance Quotes

A Strategy to Obtaining Competitive Business Insurance Quotes

The process of obtaining business insurance quotes does not need to be as complicated as the marketplace tends to present this process. Below we present a few quick tips on how to navigate getting small business insurance quotes effectively and efficiently.

Usually a foundational step in getting business liability insurance quotes would be for you to set up your strategy and plan before hand. If you enter into this process by not having clear objectives, goals and a strategy, you can easily be led astray in the murky waters of this process. Clearly in this first step you need to set your budget for how much you are willing and can spend on insurance products throughout the year. Determining how you will pay for the insurance products is a factor in your overall cost as to whether you use your cash flow funds or someone else’s.

A business insurance quote should be in a format that is easily readable and understandable and in layman’s terms. We would suggest insisting upon a one page executive summary for your insurance portfolio that you are considering in purchasing. As in most requests for proposals in any industry, the sellers tend to crank out proposals that can be from 25 pages to in excess of 50 pages in length. While this might be helpful as a backup, it further complicates the process and makes it almost impossible to compare apples to apples in the proposals that you are requesting.

Getting commercial insurance quotes online can be even more frustrating in that they tend to be templates and boilerplate in order to be streamline buying on the Internet. Having a good paradigm and map to start this journey can be half the battle.

Seeking a free business insurance quote can sometimes lead to paying much more than you thought you were getting. Almost all insurance brokers are paid a commission on the products that they sell. Some brokers will in addition to the commission also charge you a broker’s fee which can substantially add to your overall cost of insurance. It is to your advantage to ask your broker up front in this process as to how they are compensated. Brokers can receive compensation in the form of:

  • commission on the premium
  • adding a broker’s fee
  • an override from the carrier
  • a fee built-in to the finance agreement

Brokers can sometimes provide fee-for-service contracts. Finding out how your broker is compensated will play an important part in controlling your overall cost of insurance. Typically business insurance quotes masks hidden compensation arrangements.

One quick final tip in getting what you want out of this process of getting small business insurance quotes would be to make sure that you have timelines clearly in place. Some insurance companies are very quick and some are very slow in providing their proposals. Also many proposals are usually only valid for 30 days. They can be extended but normally it needs to be requested.

Utilizing of few of these small quick tips in getting your business insurance quotes can help you achieve all of your goals and strategies for your insurance portfolio.

Commercial Insurance Quotes