Are you with the correct carrier?
In February I was able to save a small business more than $20,000 on their workers compensation insurance renewal, while maintaining current coverage levels. They were thrilled, but I honestly believe I was even happier. This is one of the greatest moments of success an agent can have: placing a client in a position to be more profitable.
You’re probably asking two questions right now: 1. Does this kind of price savings happen often? (Unfortunately, no) and 2. How the heck did this happen?
Simply put, the business was using the incorrect insurance carrier. By “incorrect” I mean “not a good fit for this small business.” The carrier itself is great. They are nationally known with an excellent reputation and remarkable claims service. In fact, I use this carrier often for several types of businesses. But simply having access to a great carrier does not mean they are great for your client.
In this case, this carrier did not have a great “appetite” for the type of risk and operations the client was doing. They were still willing to insure my client – but at a much higher rate than they would pay with a carrier who was comfortable with those risks. The client was with a service provider that bundled insurance with other business services. Not in itself a bad thing, especially since the client was happy with the service they received, but this can result in what’s called a “captive market,” which means the client has fewer options.
This is why I absolutely believe that you should utilize an independent agent for your insurance needs. An independent insurance agency works for their clients, not for a particular insurance company. This means that after taking the time to understand my client’s business, I’m able to conduct a complete market search and develop solutions for their specific risks and pain points. No matter how much a captive agent might want to work this way, they’re not able to do so. That’s how you end up with a small business happily placed with the wrong carrier, either with the wrong coverage or paying way too much for it.
It’s worth saying again: as an independent insurance agency, we work for our clients, not for a particular insurance company. We are strengthened by our ability to understand our client’s needs, design a solution, and search the vast insurance market for the carrier and coverage that is right for them. And our clients benefit not only from an easier process (who really wants to shop for insurance??) but from the assurance that they have the right coverage at the right price.
I was very pleased to show this business the correct insurance solution for their business and in a small way, contribute to their success!