Smart Business Magazine, November 2019

42 Smart Business Cleveland November 2019 INSIGHTS BUSINESS INSURANCE Everything is negotiable How to get the most out of your next business insurance renewal Negotiating your business insurance renewals are just that a negotiation Its not a take it or leave it scenario It doesnt hurt to ask and the fact that youve inquired demonstrates your commitment to safety and risk management Too often a commercial insurance renewal follows a pattern the agent or broker comes in 30 days beforehand he or she finds out if there have been any major changes and then lets you know how much your policy premium has gone up says Chas Lowe commercial insurance specialist at Zito Insurance Agency Inc However whether its a mom and pop shop or large corporation theres usually room to negotiate price coverage or value added services such as risk management or other compliance related tools Smart Business spoke with Lowe about the dos and donts of your insurance renewal How does your business get leverage to negotiate the renewal There needs to be a link between the overall risk management strategy and the insurance buying process Your company needs to think long term insurance shouldnt be an afterthought With the help of your agent or broker your organization needs to demonstrate its commitment to safety and good claims history Documentation that proves safety is part of the fabric of the culture might include a copy of an employee handbook driving and accident investigation policies minutes from safety meetings or any other safety initiative your company has undertaken If you are a better risk than you were a year prior you can help drive the conversation to not only reduce rates but also negotiate a better coverage structure Besides a lower price what else can be negotiated While a small business doesnt have the same negotiating power as a company that pays a six figure premium there are a number of things that you can request such as A more advantageous or efficient coverage structure This might mean negotiating all of the buildings and equipment be covered on a blanket basis Or because metal prices fluctuate so much a scrap metal dealers insurance rate can be amended to be based on the tonnage of material it handles rather than its sales Multi year rate guarantees These are helpful from a budgeting standpoint Loss control help from the carrier Examples include identifying hazards in the workplace recommending better controls providing training materials for the employees and establishing best practices for a safer work environment Access to risk management tools Telematics can be put in commercial vehicles to track how drivers accelerate or brake Mock Occupational Safety Health Administration OSHA inspections help ensure the business is OSHA complaint Or infrared scans noninvasively examine equipment to discover electrical problems or motors that are running hot in order to prevent future problems In todays environment where new exposures develop quickly insurance carriers have become more proactive in developing resources and tools Asking for more from your broker agent and carrier can go a long way in showing that you see your insurance as more of a relationship than a commodity Is shopping your insurance every year the best way to ensure you get the lowest price It may feel counterintuitive but the more you shop your insurance the more you guarantee an insurance carrier wont come to the table with its best offer These submissions typically make their way to the same underwriters year after year If they continually see your business being shopped they wont be as aggressive on the pricing side The industries you serve the materials you use your annual sales which states you operate in etc all factor into whether an insurance carrier will offer you an aggressive quote or not Its very much a case by case basis There really is no rule of thumb as to how often you should shop your insurance however if you feel your carrier is being unfair or if the company has undergone significant change like a merger you should talk to your broker about taking the business to market This demonstrates that you are loyal and have developed a capacity to build relationships which is exactly the kind of organization a carrier likes as a customer CHAS LOWE Commercial insurance specialist Zito Insurance Agency Inc 440 205 7400 chaslowe@ zitoinsurance com Insights Business Insurance is brought to you by Zito Insurance Agency Inc WEBSITE For more information visit Zito Insurance at www zitoinsurance com INTERVIEWED BY JAYNE GEST