What are the consequences of leaving your insurance quote to the last minute?
Business insurance doesn't work like arranging personal lines insurance such as your car, house or travel. Brokers and advisers need time to prepare a proposal, and then they will negotiate with underwriters and insurers to obtain the best policy for you the client. Many small businesses today leave getting a quote until the last minute, and while this is often okay for some trades for others, it can be very costly.
In this modern world of today, we have all been sold on the idea "If you want it now you should have it now." the technology we have makes this ever more a reality from arranging insurance online in minutes to downloading songs and videos. It creates this idea that we no longer have to work or wait for what we want. The modern world can often leave us feeling like we need to stop the merry-go-round, jump off and take a breath. So when something takes more than a few minutes, many begin asking the question why? Some often scream, patience it seems is a virtue lost in technology.
Back in the early 90s and still in my 20s, nothing gave me more pleasure than tinkering with my motorcycle. One day while attempting to fix a leaking head gasket I learnt a valuable lesson. I'd stripped down two-stroke engines many times and put them back together with no issues at all. As far as anyone was concerned, I was a super mechanic, and like many other young people at that age, I was invincible, and I knew it all.
The engine was a bit bigger than those I had worked on in the past, but I was confident, that was until my Dad showed up. He looked at me and asked what I was doing I explained that my diagnosis was a blown head gasket and I had removed the head ready for repair. "Did you mark everything up?" My Dad's voice asked rather worriedly, and I replied "Mark what up?" After all, I knew what I was doing. It was then that my father took great delight in informing me that the engine was, in fact, a four-stroke and explained to me about timing and preparation.
While we had a great weekend or two putting the motor back together, that lesson of the better the preparation, the better the result has always stuck with me. It is the same with insurance a broker or adviser needs time to understand your unique business needs as no two business are identical. The more time (up to a maximum of 30 days for renewals) you can give them to prepare the more time and information they have to arrange the best cover and negotiate a better premium.
Insurance markets can change quite rapidly so, allowing your broker the time they need to approach those markets will ensure you get better policy options and most likely better premiums on your behalf. However, leave it to the last minute, and there are two other outcomes which aren't so desirable such as being left without insurance cover for a short period, leaving you sat waiting. The second is not having the correct cover in place and ending up with a premium that is less than economically thrifty.
Commercial insurance is rarely an off the shelf product, providing you with the best solution will often mean having to clarify and ask more questions. Negotiating with the insurance provider may take time as well as insurers, and underwriters like to confirm the details they receive are a 100% correct. Insurance companies just aren't allowed to just take your word for it anymore, it's not just about protecting their interests either it is also about protecting yours. In the end, this is about your business; for your livelihood would you want or expect anything less?
Imagine for a moment a builder who is asked to rush and build a house, what would happen if he didn't prepare the foundations correctly? Another example could be that you call a bouncy castle hire firm at the last minute for a bouncy castle; the business owner informs you he only has one left. You agree over the phone and ask him to hurry; he rushes over with the castle you just ordered. When it's inflated a bright pink princess' castle occupies your garden and your 14-year-old son is a little less than pleased.
Speak to any professional tradesperson they will all tell you the same. Take a painter, for example; he will inform you that you don't just paint over the top of old paint if you want a quality finish. You have to prepare the surface before painting after that the undercoat is applied, more rubbing down is then needed, and then you rinse and repeat. By taking this time before getting to the painting stage, you will end up with a much better result.
Delegating more time to the early stages of any project is vital in ensuring you receive the best possible service and the best possible result. Don't wait for your agent to send you renewal terms chase them up and start asking for quotes from other agents as soon as that date arrives. If you leave it to the last minute, you have no one to blame but yourself if you miss out on a great deal. Even the best of us can fall behind at times, so everything you do such as acquiring quotes will only benefit you in the long run.
Whether it's a new business or renewing a policy for an established company, make a note on your calendar 30 days before your renewal is due or you need your insurance to start. Doing this gives you time which also provides you with the upper hand, it allows you to approach more brokers and agents, and it also empowers your insurance adviser with the time they need to construct a strong proposal on your behalf.
Every good business didn't become a success overnight there was a lot of research, planning, deployment and tracking. Every good service is the same; you deserve the best and if you want the best proper preparation is always the key.
Should you require, insurance or you have a renewal coming up contact us now to arrange a quote or use our callback form to organise for a broker to call you back 30 days before your next renewal.