How to Negotiate the Best Rate for Business Insurance

Many business owners end up paying too much for business insurance because they dont know how to negotiate for the best rates. Negotiating for better business insurance rates is a relatively easy task that every entrepreneur should learn.

The key to negotiating for a better insurance rate is to remember that insurers, insurance agents, and brokers are businesspeople. They need your business, so you have quite a bit of leverage with them.

The best leverage you have when negotiating a better insurance rate is to produce evidence that you are willing to go to the competition. Simply bringing along business insurance quotes you have received from competitors or located online when you visit your insurance agent can get you a better rate.

Some Techniques for Negotiating

  • Bring printed copies of business insurance quotes with you to negotiating sessions. Having more than one quote is usually more effective; it shows you are serious.
  • Do research by contacting other insurers or visiting their websites before negotiating.
  • Make sure the agent or broker knows that you are also looking elsewhere.
  • Call or e-mail the broker a few days or hours before negotiating and tell him or her that you are looking elsewhere. This will give the broker time to locate better rates.
  • Seek out an insurance broker or agent that works with several different insurers; they can often get you better rates. Insurance brokers can often get businesses better rates than agents can.
  • Consider dealing directly with insurance companies. Many of them will sell directly to businesses online.
How to Negotiate the Best Rate for Business Insurance
  • If you really like a particular insurance companys products, contact the company and get a list of agents or brokers in your area. Sometimes different agents or brokers can give you different business insurance quotes on the same insurance.
  • Always question rates that appear too high or different from other quotes you have received. Ask brokers or company representatives for an explanation.
  • Take your time. If you know you will need insurance, start shopping for it a few months in advance. Dont get rushed and forced into buying a policy too quickly. Taking the time to research policies and quotes will save you money.
  • Consider all the alternatives, including self-insurance.
  • Know the law. Find out what insurance is legally required in your state and what companies offer it. Unscrupulous brokers sometimes try to claim that insurance is legally required when it is not.
  • Get referrals from others in your business. Ask mentors and others you respect where they get their insurance; they can sometimes direct you to a better deal.
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