If you’ve been in business for any amount of time, you know that your insurance broker will ask a lot of questions, almost every time you speak with them. Whether it’s requesting a quote for a new policy, or reviewing your current coverage and making adjustments based on changing factors in your business – there are a lot of things to discuss.
A good business insurance broker uses this information to build a detailed profile of your company and to carefully analyze the rates of as many carriers as possible when presenting you with options. That information is gold for a broker whose sole job is to find the perfect fit.
THE TYPE OF INFORMATION COLLECTED BY BUSINESS INSURANCE COMPANIES
So, what type of information are you most likely going to be asked to provide? It varies depending on the broker with whom you are working, and the type of coverage for which you are being quoted. Here are some of the things you may be asked about:
- Details on lifting exposure
- Details on driving exposure
- Current loss control policy & procedure
- Return to work programs
- Safety programs
- Details on prior claims
- Details on hazard material exposure
- History of payroll, sales and premium
- Company financials
- Hiring and HR practices
- Minimum driver standards
- Hours of operation
- Exposure to alcohol
- Product exposure
- Exposure to diseases
- Exposure to drugs and substance
- Types of clients
- Seasonality
- Time in business
- Management’s experience
- Height and underground exposure
HOW THIS INFORMATION IS USED BY YOUR BROKER AND CARRIER
With so much information requested, how is it being used by your broker and in turn the carrier that eventually offers you coverage? There are several things to keep in mind here.
To start, the insurance company needs to be able to accurately calculate how likely you are to file an insurance claim. Key factors such as the number of claims you’ve filed in the past, your current safety guidelines, your back to work program, business structure, and number of employees in certain positions all directly impact these things.
At the same time, the more information you give, especially if you have several homegrown prevention programs in place and you are proud of how you handle accidents and safety issues, the more fair and accurate your rate will be based on the established risk factors.
Insurance companies prepare rates based on a trove of statistical data combined with state guidelines and regulations, and in some cases experience modifiers. They know the likelihood of accidents in each industry, lawsuits based on your annual revenue, and crime based on location, nature of business, and exposure to risk. As such, they need more than just base statistical information about your company. They need to know every factor that might influence in a positive or negative way those factors.
With that information in hand, you can receive the best possible quote from your carrier.
GET STARTED WITH A BUSINESS INSURANCE CONSULTATION
If you are ready to learn more about how your insurance rates can be impacted in a positive way through careful analysis of your business safety measures and history, we can help. Radius Insurance works strictly with businesses and a huge number of carriers from around the country.
We can help you not only determine if your current coverage is sufficient and a good rate for your industry, but also whether there are other types of coverage you could benefit from. Contact us today and learn more about how to improve your business insurance coverage.
