Save Money On Contractor Insurance By Requiring Renewal Bids Before Expiration

Have you ever had a commercial insurance broker show up on the last day of your insurance policy with renewal quotes? In the construction business, this happens all the time. It creates stress, cash flow uncertainty, hasty decisions, coverage problems, and overpaying. It happens with renewals for General Liability, Workers Compensation, Commercial Auto, Property, and Excess Liability. It is poor service, and it costs you money.

You see, when you are out of time, you options are greatly diminished. Most insurance brokers want to be the last to present their renewal quotations. It increases the odds of them getting the renewal sale. They can ask what else is being considered. If it turns out you have a better quote from someone else, they get a chance to find something wrong with it, or call their underwriter for a deeper discount. They want to call their underwriter and say, "You can write this renewal if you will meet these conditions." Many deals happen this way every day of the week. Contractors complain about this practice all the time, but insurance brokers have plenty of proof coming in late makes money.

Most contractors want to skip running out of time each renewal, but can't seem to stop it. We find getting quotes in early takes quite a bit of effort and resolution. Let me share with you a few of the strategies we've found to be helpful.

Start early and take the initiative. At least 90 days prior to your expiration date, pull together complete renewal specifications, get updated loss run reports, and start asking brokers which markets they want to approach for quotes. Before granting any broker a market assignment, secure their agreement to stick to a firm quotation deadline 2 weeks before the renewal. Put the deadline in writing.

Brokers want assurance their quotes will not be shown to other brokers for them to beat. Giving you a quote early exposes them to lethal competition. Assure the brokers you will be completely fair. Then stick to your promise, and don't give quotes to other brokers in advance of your renewal.

Be very firm. Repeatedly advise brokers that the deadline is the deadline, not the expiration date. The more firmly and often you state it, the more they will believe you. Late quotes will no longer be a problem for you, if you really refuse to accept late quotes, even when they are cheaper.

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For more information and free support reducing insurance costs Click here: Contractor Insurance Renewal Control Don Bury, President Insurance Cost Reduction Services Phone/Fax: 800-760-1867 email: donbury@icrs.biz Insurance gets easy only when you get organized. Get help from the author of The Buyers Guide To Business Insurance (1993), and founder of Insurance Cost Reduction Services. Over $20 million in measurable savings delivered by helping buyers organized and negotiate with their brokers.

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