The Question: How do you obtain the most competitive insurance renewal proposal?

 

The Process:

 

1. Decide if you want an objective opinion on your insurance program.

 

2. Generally, we will use your current agent and one other agent. The new agent should know your industry and the insurance marketplace.

3. We will coordinate the insurance market assignment. 

4. The agents will not approach the same insurance carriers. 

5. Duplicate submissions to the same insurance markets will cause the underwriter not to give his or her best effort. They will not be willing to commit their time or the company’s resources to offer a proposal.

6. We will advise each agent that their first proposal is the only proposal you will accept. Modifications will not be accepted. “If you have a better price, why aren’t you offering it up front"?

7. Each agent will know that the first offer should be the best offer. Setting the rules in advance is fair to all concerned. This will enable you to make the most prudent business decision and eliminate personal feelings, which are not the best criteria for a major business expense.

8. The best insurance markets and the most knowledgeable professional agents will only be willing to continue to commit resources and time to you when they are competing on a level playing field. Anything else will only hurt you in the long run.

9. Treat this process as you wish to be treated by others when dealing in your industry.

10. We will obtain insurance proposals in a timely fashion. The message will be to “offer your best proposal up front and the first time, in a timely fashion.”  You will not have to make a last-minute decision on one of your largest overhead items.

11. Pricing will become insignificant the day you have a large claim that is not covered due to inferior coverage. Your current agent should not have his or her program and coverage reviewed and improved by others. 

The Answer: Use an impartial objective consultant to handle the bid process for you.