The only way to ensure that you have the best coverage and the best rates in place. It includes:
- Comprehensive review of your company and its exposures to loss
- We pay particular attention to the severity exposures that could cause devastating loss
- Creation of custom insurance specifications that are designed specifically for your company
- Submit RFP to insurance companies who specialize in the particular areas that are important to you
- Review and negotiate proposals, and then present you with the best offer and provider who will give you the best protection, coverage and price
- This process typically gives our clients substantial savings on their premium, in some cases as much as 50%–while at the same time giving them better protection
How Does the Competitive Bid Achieve Such Results?
We set up true competition for the insurance.
You need the best price and terms the market will bear. A single broker who says he approaches multiple insurers is not going to get the job done. Why not? Because there is no competition where the rubber meets the road – between you and your broker. You need to understand the insurance market dynamics. Brokers have many options in the market, all at various levels of broker compensation, and they have leverage over the insurers because they control the client – in their mind and in their terminology they “own” the client. They will put these options and this leverage to work, and take on all the work involved in doing that, only when they are motivated to do so by … competition. The final factor is the financial relationship the broker has with its insurer “partners.” The broker needs its book of business to be profitable with every insurer in order to obtain the lucrative contingent commissions that are delivered annually. This means high premiums and low claim payments – the essence of a conflict of interest.
The final point is broker front end commission, which is hidden and very substantial. Your risk manager can eliminate the fat and cause the difference to drop to your bottom line.
(Can you conduct a bid using multiple brokers yourself? Not unless you have unlimited time available, can control the brokers, and have the ability to understand and compare the policy language – all hundreds of pages of fine print you’ve never seen before )!