1. You should shop around for your insurance coverage

Staying blind with the same company year after year will rarely, if ever, result in the best coverage for the best rates. I suggest you bring in 3 agents each year, or at least every two years, to review your insurance needs, recommend coverage, and provide costs.

It would directly bring in an independent regional agent, an independent major, and the carrier’s agent. By doing this, you are accomplishing a number of things. First, you are looking for the best costs. But second, and more importantly, you are looking to find out which coverage each one will recommend. This will help you find out if your current coverage is adequate, if you have over or under coverage. If all three companies recommend the same levels of coverage, you’re probably safe. If two of the three recommend higher or lower levels of coverage than you have, then you’d better find out why and see if you agree.

You don’t need to be an insurance expert as long as you are dealing with someone who is. You want to take advantage of their experience and by undergoing this process at least every two years, this is exactly what you will be doing. You want each one to provide you with a complete written proposal that includes the recommended coverage, explanations of these recommendations, and the costs for each. Without costs for each coverage area, you will have no way to effectively evaluate one company against another, and you will lose the option of choosing policies for different coverage areas from one company to another.

Remember, you don’t need to have all your coverage with one company. In fact, unless individual costs are best with a company, or unless a company has a special package plan for your type of business, you probably shouldn’t keep all coverage with just one company.

There is no reason why you can’t have business coverage with one company and auto coverage with another, etc. In fact, unless you are given significant discounts for doing so, the only reason you would buy all coverage from one company, although some policies may cost more, would be laziness or convenience, which is often nothing more than another. form of laziness.

I know of a company that has not had a competitive review of its insurance for over 20 years. When they did, they saved $ 30,000 a year or nearly 15% in this case.

2. make sure you’re not over-insuring

It won’t do you any good to insure something for $ 100,000 when the replacement value is just $ 75,000. The agent and the company do more to you than is necessary. They will not refund premiums if you have overvalued something and therefore overinsured.

It is up to you to know the value. If you cover the equipment for a maximum of $ 10,000,000 at replacement value and the total replacement value is only $ 5,000,000, that’s your problem. You should know or have a very good idea about the actual replacement value. The reverse of this is also true, do not underinsure. Make sure you know if you are insured for replacement value.

This is an area where there are a lot of gray areas. This is all the more good reason for annual reviews. By doing these, you will get opinions and advice from a number of different sources and an inconsistency is much more likely to arise. Remember, don’t just ask agents and companies to bid on current coverage, but evaluate your operation and recommend coverage and provide costs.

3. Ask your agent what you can do to lower your insurance costs.

They won’t tell you unless you ask. By asking, you are expressing concern about costs. The agent should interpret dissatisfaction with costs as a sign that they will seek coverage elsewhere. Suddenly, the agent has a great incentive to try to reduce the cost control of his business.

4. Look for agents or carriers that specialize in your type of business.

Start by asking any association you belong to for suggestions. Also, ask competitors, suppliers, and even the Chamber of Commerce. If there are special plans for your type of business, you should be able to make significant savings due to the types of packages and levels of coverage. You will find that the required coverage levels are built into the plan and that if you buy them separately they would cost you significantly more each year. I was able to save more than $ 1,200 a year by finding a plan designed to cover companies in my industry.

A note of caution though, just because an agent tells you they are offering a great plan for your type of business, don’t assume this is true. You still need to get at least three appointments. The agent with the special plan may just call it that to sell you when in reality it is not that special at all. The plan may be designed for your type of business, but it is overpriced or contains elements that may be relevant to most types of businesses. of companies in your industry, but they are not necessary for your business at all.

5. Make sure your insurance covers the replacement value, not the current value.

It may seem like you are saving money by covering current value, but if you have a claim and need to replace lost or damaged equipment, you will quickly discover that you have been very nearsighted. In most cases, the current value will be a fraction of the cost you will need to replace the item. Do not cut corners in this area. Make sure you have replacement value or at least coverage equivalent to the cost of very good used equipment.

6. Remember, premiums are just another name for payments.

Your goal is to control these payments; buy only what you need and get the best value for your purchase. Ask for written recommendations on coverage and costs and have the agent justify these recommendations for you. Insurance agents are sales representatives. Insurance is your product. Do not forget this. Plain and simple, like any other purchase you consider, they should justify this purchase.

7. Whenever you have a claim, get your own quote

Don’t do what most companies do and just take what they tell you is worth it. This is not an open and closed case; just because they say so doesn’t mean it’s like that. By getting your own estimate, you can check the insurance company’s estimate and know that you have a fair settlement or may disagree with your costs and fight for a higher settlement. If you simply accept their estimate, the actual loss involved may cost more, much more in some cases.