'Shopping' For Insurance

PipeGuy

Contrary to my insurance agent's admonitions, I 'shop' agencies every year. I don't see how one can expect to hold down insurance costs without doing so.
Agents insist that with only a 3 or 4 % annual increase in premiums it's 'not worth' the time and energy to get quotes every year from multiple agents. I,on the other hand, see that kind of annual cost escalation as having significant long term implications.

Besides the obvious 'loss control' efforts, what strategies are you all using to minimize your insurance costs?

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Fortunately I keep my feathers numbered for...for just such an emergency. -Foghorn Leghorn

Double-A

I try to get an 'audit' of our set up every year, and yes, we shop rates. I let them know that is what we're doing and ask them to sell me on their company and agency for any value-added service I might miss in a pure price comparison.

This audit is usually offered at no cost and is performed by someone hired by the insurance company. They take a look at our safety program and equipment, our job sites, etc. and make recommendations on how we can improve or limit our liability.

We try to incorporate everything they suggest into our program and send proof of that to the insurance company and ask for a reassessment of our premiums based on that. Comes in handy at the real audit every year. I've had them drop $400.00 off the price in one year and we renewed at that rate for the next. So, possible savings of $800.00 over two years. Worth it to me, since I hope this money never give me a return on investment.

One other thing we do is to ask about multi-policy discounts and for them to quote vehicle, workers comp (if they are able), etc.

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"My clients’ wishes are the center of my attention." -- David Guido, a contractor in Woodstock, N.Y.
New York Times, July 20, 2006

mdshunk

I know it would be a worthwhile effort, but I don't have the intellectual energy to devote to it. When I first started my own dog and pony show, I went to the borough I work in mostly and asked them who most guy's GL policy on file was with. That's who I went with. I wish there was some service that you could do one-stop GL policy comparisons like you can do for personal auto insurance. If I ever have the time, it's on my list of things to do. I can't honestly see myself troubling to do so each policy period.

bigchaz

Do yall actually switch companies every year or so? I imagine that it makes companies rather suspicious if youve had 5 differant coverages in 5 years?

PipeGuy

I've had 2 agents in 3 years and would switch again if I thought it in my best interest (reputable insurer/agent that quoted rates >=4% lower than current rates).
As far as underwriters being suspicious goes - suspicious about what? Data collection and archival protocols make losses so transparent that underwriters pretty much know how many times a day someone wipes their ass and how many sheets of TP got used.

__________________
Fortunately I keep my feathers numbered for...for just such an emergency. -Foghorn Leghorn

Grumpy

I signed up for insurance in 2004. Due to the total idiocy of my insurance broker I am not being forced to reshop my wc. I was informed by ANOTHER broker my insurance company will non-renew my gl at the term's completion. Why didn't my broker tell me this?

Anyways long story short, my WC is in the state pool so the policy is the policy and the rates are the rates until I have a more proven work history and can move out of the pool. It's the GL that matters but many insurance companies won't touch roofers... and since I am a paper contractor that makes it worse.

I am not being forced to shop due to rates, but rather a total lack of customer service.