Shop Around to Find Quality Insurance for Less

Do you find your business’s insurance cost getting more expensive each year with no better coverage and perhaps less? Beware of complacency.

On a Personal Note

Before looking at business, let me touch on personal insurance. Have you been using the same agency for years and not really evaluated what you are getting for your money. Do they simply have a renewal sent out each year, expecting you to simply renew automatically? In other words, are they being lazy and not really looking out for your best interest. Yes, they represent insurance companies but you are paying the bill. Even worse than them being lazy, are you being complacent? If so, it’s time to shop around to find quality insurance for less.

A Business Example

Shortly after I took on a new client I began reviewing what was being spent for various things. In my role as a Part-time CFO or Controller this is something I routinely do with a new client in order to identify opportunities to save them some money. When I got to their insurance coverage for general liability, property, and workers compensation I was very surprised at what they were spending. This particular company was a small manufacturer and the product they made carried with it a certain element of product liability. However, there was no product liability policy. On top of that the workers compensation plan was outrageously expensive. The majority owner who was also the president insisted that because of an accident a number of year prior he was stuck with high workers compensation rates and that he could never get product liability. I challenged him to let me see if I could find a better deal. You see, I firmly believe it pays to shop around to find quality insurance for less or you will be at the mercy of the insurance company and your agent. So, what were the results? Well, I was able to reduce the insurance cost approximately 25% and added product liability insurance which the company thought was impossible to get. All of the coverage cost was reduced but particularly the workers compensation. So think about that. Total cost was reduced 25% and this after adding much needed product liability coverage.

Keep an Open Mind

It is easy to get into a mindset of just mindlessly continuing on the same path without even considering if there is a better and less expensive way. Unfortunately, insurance is one of those areas where we often fall asleep at the wheel. We get a bit lazy and allow our agents to do the same. I encourage you to make it a regular practice to tell your agent before renewal that you want all your policies reviewed to see if you can do better. Incidentally, I know we need to consider such things as how bad certain companies are about cancelling coverage or making huge premium increases over claims that are really nothing unusual. However, that is part of the consideration as we shop around to find quality insurance for less. So, if you haven’t done so for a while, take the time to do this.

One more thing; the same thing goes for health insurance. Don’t just blindly accept premium increases. Actually, this same client had fallen into that trap as well.

If you want to know more, contact AimCFO – Contact

As always, your comments are welcomed.

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