As a an insurance broker who works with businesses in securing professional liability insurance I frequently hear, “I’m putting this out to bid and the other companies have only needed some basic information to get me a quote. I’m wondering if I can get you some basic info and go from there?” I value my time and you should to. The number one piece of advice I can provide to secure the best professional liability insurance option for your business is to select one insurance broker who you feel would best meet your needs.
Here is a quick insurance lesson for you. In commercial property and casualty insurance, an insurance company can limit an agent’s access. If insurance broker A contacts Insurance Company A first, no other insurance broker will be able to get a quote from Insurance Company A. It becomes somewhat of a game of whomever contacts the insurance company first has the opportunity to present a quote from that insurance company. This will block other agents unless the agent gets a letter signed by your company agreeing to release the quote, this letter will move the authority and access of the quote from the first broker to the broker in possession of the letter. The first agent who did all the work loses access.
In the end you might think that having multiple agents bid for your professional liability insurance coverage might get you the absolute best combination of coverage and price although unless the broker is specialized and has access to a unique program we are all approaching the same companies.
Selecting and working with one broker can work to your advantage as providing a complete submission to an insurance carrier can often provide an advantage for the broker to negotiate the price of coverage.
This article is intended for informational purposes only and is not insurance advice or a substitute for consultation with a licensed insurance broker to address your particular risk or circumstance.