One – Give yourself time to shop around and compare carriers
Waiting until the last minute to look for a new insurance carrier puts you at risk of a coverage gap. Coverage gaps leave you vulnerable to losses and could increase future premiums. Since it takes insurers time to learn about your business, calculate its risks, and prepare quotes, start shopping early.
While it’s easy to auto-renew with your current carrier, that may not be the best choice for your business. Premiums have been sharply increasing, and your coverage needs could have changed. Simply rolling over policies year after year can eventually leave you exposed to risk or paying too much.
If your business has a history of past losses, operates in a niche industry, or received extremely favorable terms in the past, starting to look for new carriers a few months before your current policy comes up for renewal is even more important. Because of these factors, pricing a policy could take longer. Starting early gives you time to get several quotes to compare.
Once you’ve collected a few quotes, look at the premiums but also pay close attention to coverage levels and exclusions. Picking the best insurance policy is often a balance between risk and cost. If you leave shopping for a new carrier until the last minute, you might not have the time to fully grasp the differences between the carriers and their quotes.
Even if you decide to stay with your current carrier, having additional quotes can help you negotiate.
“Every business has a risk problem, they just don’t know how large it is. One single insurance claim has the potential to unravel a business, due to risk transfer. It’s a sleeping giant in the industry and today it rests on a static, paper-based process,” said Nimi Katragadda, Partner at BoxGroup. “TrustLayer’s technology helps verify vendors have the right coverage in place so that their clients are making conscious decisions about the risk they take on. They automate this process, saving time while shedding light on issues that could result in dropped coverage, or worse cost millions, if gone unchecked.”