Shopping Around - Is It Worth It?

Towards the end of the year it seems like I get a wave of panic from clients and potential clients.  As many insured's renew around the first of the year, they all are wondering if they are getting the best deal or if there's anything else they should be looking at.  If I owned my own business, I would be doing the same thing.  I would want to know I was getting the best deal with the best coverage.  And, if you have an ethical broker, they should be marketing your renewal out annually.


This isn't to say that every year there will be a better deal out there or that it's even smart to move carriers year after year.  There are pros and cons to moving insurance carriers.  One of the pros is that you could find a better deal possibly with better coverage and save some money.  Now whether that is five dollars or five thousand dollars is another thing.  The cons to moving around could be that with each carrier move, coverage changes.  Forms and exclusions are not the same across the board with each insurance carrier.  Gaps in your insurance program can ensue making it difficult to know which insurance carrier is covering what type of loss or claim. 

Remember, being with the same carrier for a few years consecutively does mean something.  Insurance carriers appreciate loyalty and being with the same insurance company for a few years repeatedly does make it easier to sort out claim situations if they arise.  But, every year it is nice to have a broker that does a insurance market vital check.  Are there new competitive markets that have popped up for specific industries?  Are some existing markets entering into new industries or classes of business?  Are specific insurance carriers getting out of specific industries?  All of these questions should be answered by your broker before your renewal has come and gone. 

The bottom line is if you have a great relationship with your broker and they provide you with fantastic service upon renewal and throughout the year, there's probably not much of a reason to move.  However, if you notice that you've never received another insurance indication or quote other then the incumbent, maybe it is time to make a call.  Happy shopping!