Don't Let Your Expiration Date Cost You When Negotiating Contractor Insurance Renewals

Contractors complain that brokers always come in at the last minute with their renewal quotes, no matter how early they start the process. Read on to learn how to avoid stress, cash flow emergencies, hasty decisions, and paying too much. Stop this broker tactic in it's tracks.


You see, when you are out of time, you options are greatly diminished. Most insurance brokers want to be the last to present their renewal quotations. It increases the odds of them getting the renewal sale. They can ask what else is being considered. If it turns out you have a better quote from someone else, they get a chance to find something wrong with it, or call their underwriter for a deeper discount. They want to call their underwriter and say, "You can write this renewal if you will meet these conditions." Many deals happen this way every day of the week. While this practice irritates a lot of contractors, it is good business for the insurance broker who captures the renewal sale.

A lot of contractors try to avoid getting into the corner of the last minute renewal, but find they are frustrated year after year. We find getting quotes in early takes quite a bit of effort and resolution. Let me share with you a few of the strategies we've found to be helpful.

Start early and take the initiative. At least 90 days prior to your expiration date, pull together complete renewal specifications, get updated loss run reports, and start asking brokers which markets they want to approach for quotes. A market assignment is valuable to a broker, so give it only in exchange for a solemn promise to stick to your deadline. Put the deadline in writing.

Brokers need to be sure their quotes will not be shopped to other brokers. Giving you a quote early exposes them to lethal competition. Assure the brokers you will be completely fair. Then stick to your promise, and don't give quotes to other brokers in advance of your renewal.

Be very firm. Repeatedly advise brokers that the deadline is the deadline, not the expiration date. The more often you state that, and the more firmly you state it, the more you will be believed. If you stick to your commitment, the problem of late quotations will become a thing of the past.

By: Don Bury

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Here's more help getting lower insurance rates and better coverage Click here: Drive Down Contractor Insurance Costs Don Bury, President Insurance Cost Reduction Services Phone/Fax: 800-760-1867 email: donbury@icrs.biz Follow the system that has delivered $20 million in measurable savings to contractors and business insurance buyers. From the author of The Buyers Guide To Business Insurance (1993)