Small Business Insurance Rates: Helping Your Clients Manage Premium Costs
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By Sara Bankert, Dir. Small Business/BOP
Insurance brokers know the scenario all too well. When marketing new or renewal small-business accounts, they find out that some of their top carriers have increased small business insurance rates – which they now must explain to their policyholders.
The fact is, over the past year, commercial insurance rate increases have hit smaller businesses particularly hard. The good news? There are ways that insurance brokers can better address the issue of rising premiums with their small-business clients – without having to compromise coverage.
Today, there are many insurance premium financing companies that can help businesses better manage their insurance costs by spreading out payments over time.
Explore All Possible Discounts
As a retail broker, it can be a challenge to stay on top of multiple carriers and all the discounts they may offer. If you have a large book of small-business clients and write with specific insurers, consider maintaining a list of applicable discounts that each carrier offers. This method can be extremely useful in managing small business insurance rates – particularly if you are marketing renewals or new accounts at the last minute.
Cross-Sell as Much as Possible
Every small-business owner must carry specific insurance to keep the doors open. However, there are many ancillary insurance products that can be added to not only provide a business with better protection but also provide an opportunity to maximize multi-policy discounts.
Review Various Deductible Options
This may seem like a basic tip, but in many instances, simply presenting your small-business clients with options for increasing their policy deductibles can be an easy and straightforward way to help reduce their rates. Before meeting with your clients, run some quotes so you can present them with information as to how much they may be able to save by going with a higher deductible.
Give Premium Financing a Try
Today, there are many insurance premium financing companies that can help businesses better manage their insurance costs by spreading out payments over time. While businesses will be subject to interest when financing their insurance needs, smaller payments that are spread out over a period of time can help make premium increases easier to manage.
Develop a Marketing Progress Sheet
When going out to multiple markets, maintain a list of the carriers you approached and the new/renewal premium rate offered. When speaking with your clients, show them the price comparisons of all the markets. By doing this, you demonstrate to your clients that you did your due diligence by approaching multiple markets, as well as showing them that most commercial business carriers are experiencing similar rate increases across the board.
Having to discuss small business insurance rate increases with your clients can be a cringeworthy moment for even the most seasoned insurance professional. Routinely marketing new and renewal accounts early provides you with the time needed to properly review a policy with your clients and make appropriate changes that can help offset premiums — something your clients are certain to appreciate!
Sara Bankert is the Director of Small Business/BOP at BTIS. For additional information, email sbankert@btisinc.com.
Builders & Tradesmen’s Insurance Services Inc.
BTIS is committed to providing robust, individualized products and the highest level of service. Our easy-to-use commercial insurance platform, educational tools, and helpful underwriters make it simple for producers to diversify their books of business by expanding their product portfolios.
Part of the Amynta Group, BTIS is a nationwide insurance intermediary with a small-business attitude. We believe in building solid relationships through communication and a genuine concern for the success of our retail broker clients and the policyholders they serve.
For additional information, visit www.btisinc.com or call (877) 649-6682
