Finding a suitable commercial insurance carrier can be time-consuming and challenging. But it’s worth protecting your company against property damage, theft, cyber attacks, workplace-related injuries, and other risks. If you pick the right provider, you’ll ultimately guard against business interruptions and unplanned costs.
For the most part, businesses think they are locked into partnership with their carrier – even if their vendor does not fulfill their needs, costs outweigh their coverages, or service is unreliable or ill-fitting. The truth is, you can switch insurance providers at any time. You just have to consider the following factors.
Switch Commercial Insurance Factor #1: Timing And Potential Penalties
Ideally, the most cost-effective switch would be close to your current coverage renewal date. Since your commercial insurance is under a time-bound contract, there may be fees that trigger when switching your insurance early. You’ll want to compare the potential penalties to the benefits of switching — like lower costs for better coverage.
When ending a contract early, insurance companies will either “prorate” or “short-rate” a refund if you’ve overpaid. When an agency prorates your plan, you will be refunded the remainder of the total premium amount of the coverage you did not use. As an example, if you are on a 12-month policy and you decide to leave after 6 months, you will be refunded the total amount of the remainder.
Optionally, insurance providers may short-rate your refund and take a portion as a cancellation fee. It is recommended to check the fine print of your agreements to ensure that you’re not overpaying with extra fees.
Reasons why you might need to switch commercial insurance providers immediately:
- Company relocation
- Change in business practices
- You need a coverage that the provider doesn’t offer
- Budget cuts or updates
Switch Commercial Insurance Factor #2: Cheaper Doesn’t Always Mean Better
When shopping for providers, price should not be the only consideration. A cheaper quoted rate can tempt you to think about a switch. And sometimes it could be worth it, especially if your budgets change. Just because a potential carrier is offering coverages at lower costs doesn’t mean it is a better option for your company. Like most things, you get what you pay for.
The key is to understand what you need to cover and how much protection you require. In many cases, cutting insurance you don’t need and beefing up those you do will even out your costs (or save you money in the long run). That’s why the key switching influencer should be an insurance agent that understands your needs and can appropriately meet them.
Switch Commercial Insurance Factor #3: Find An Insurance Provider Who You Can Trust
There are many commercial insurance providers. And since you’re investing a considerable amount of your company’s budget, they must have your best interest in mind for you to get the most appropriate coverage. Search for an insurance agent and partner who values your success and protection as much as they care about the next renewal.
Looking to better protect your commercial assets? Contact BlueStone Advisors today for a free consultation on how to switch commercial insurance providers for better coverage and transparent policies.