Is it time for a new Agent?

Most business owners wait until their policy is up for renewal before reviewing the policy. Often, the owner of the business does not review the policy at all and instead makes the decision to simply trust the agent to review the policy. The problem is, the agent does not run or operate your business. They simply cannot be aware of all the changes that may have occurred since last year’s review. Sure, you contacted your agent when you bought that new company van. They responded quickly, the van was added to the policy, and your insurance proofs were sent promptly. But did you inform your agent of the upgrades you’ve made to your building in the past year? If not, then you may be missing out on some discounts. Did you inform your agent of changes in payroll? If not, then you may get an unexpected bill from your insurance carrier due to an increase on your Workers Compensation policy. Have you hired or let go of employees? Some General Liability Policies are rated based on the number of employees; this can cause an increase or reduction in premium on your General Liability as well.
It’s important that your agent maintains an ongoing relationship with your business. Here are a few questions to ask yourself when evaluating whether or not you should consider changing your insurance agent:
1. Are you more loyal to your agent then they are to you? You have been with an agent for several years, but have they visited you at every renewal? Do they stop or call periodically and inquire on issues related to your policy? Was the last time you saw them when they came to collect your down payment? Regular visits and occasional calls from your agent can make all the difference in the world. It will often play a vital role in helping you avoid insurance issues before they come up.
2. Does your current agent respond quickly to your questions and concerns? Are they difficult to get ahold of? Do you have their mobile number in the event of an emergency?
3. Do they provide you with the professional respect you require? This is often overlooked, but it is of great importance. Do you tolerate a less than normally acceptable level of care because you feel you couldn’t get the same coverage elsewhere, or at least not at the same price? The real question you need to ask yourself is, if they don’t treat me well when it comes to the small things, then how likely are they to perform well when it comes to something important such as a claim?
4. Does your agent shop your rates for you? Many agencies will have multiple carriers that they can shop your policy through. If you have an agent that meets or exceeds your expectations, then request them to shop your rates for you. Ask them to provide you with a list of each carrier and the rate they offered. A good agent will let you know if a new carrier is better suited for your company.
Now that you have a new agent, make sure you set clear expectations for one another. After all, you are essentially hiring this new agent as you would a new employee. Keep in mind that the agent also has the right to clarify how his/her agency works and what is expected of you as their client in order to keep the policy as accurate and up to date as possible. I refer to this as “Defining the Relationship." Taking a few minutes to define the relationship can not only save you from headaches down the road, it can also be the start of something good.