Tips for making sure you don’t get caught off-guard
We were recently talking with a prospective client and gave them quite a shock. The organization was about to lose its coverage, and the existing broker was completely unaware. Their property and casualty carrier was one of several scaling back coverage for the prospective client’s nonprofit category.
Could this happen to you? It might if you’re not taking time to mind your broker relationship.
We were able to help this client in large part because of our deep experience with nonprofits. We were already aware that several carriers were dropping coverage for these types of companies. We also knew which carriers were continuing the coverage, so we were able to successfully take the prospect’s business to market for the most competitive rate.
Here are some things to keep in mind:
- When evaluating a broker, be sure to ask about their experience with similar types of organizations. It’s best to choose one that writes a lot of business similar to yours.
- Ask about their market strategy and the number of carriers to whom they have access.
- Consider their size. If you choose a broker that’s too large, you could get lost among their more lucrative clients. But if you choose one that’s too small, you probably won’t get the best access to markets.
Expect regular contact
Changes in your business often require changes in insurance coverage. If you have updated your business model, added properties, merged or partnered with another organization or changed products or services, your broker needs to know. Your protection depends on it.
Your broker also should be talking with you about changes from carriers like the one we just described. And they should keep you updated on rising market rates so you can prepare.
Benchmarking your coverage against your industry peers is another important job for your broker. They can help you compare what your peers are covering vs. your lineup and limits. Does that analysis expose a gap for you? For example, we’ve noticed there’s a big gap in cybersecurity coverage lately, and that’s getting More Important Than Ever.
If your broker doesn’t already initiate it, we suggest asking for a mid-year meeting to cover these kinds of issues.
Consider marketing your coverage every three years
Your broker should be going to the market to check your options and pricing about once every three years. At this frequency, chances are good you will find some improvements are available.
With a little care, your broker relationship can become more fulfilling and protect you from surprises down the line.
By Ryan Miller, Commercial Risk Advisor, The Miller Group