How Often Should I Shop my Commercial Insurance?

Written by Katie Bratek, Senior Account Manager

Insurance ServicesIn a post-pandemic world, with costs rising, concerns over inflation and a host of uncertainty, a question that we often get from both clients and prospects alike is “How often should I be shopping my insurance policies?” According to the latest report from the U.S. Board of Labor Statistics, the current rate of inflation is 6.5%. What this means to the average person or business owner is that costs are rising all around us and that leads to many looking at ways to save in other areas. One common place that we look to save is on our insurance.

Insurance is a funny product; everyone wants the best possible coverage at time of loss, but nobody wants to pay for it at the time of purchase. So when is it appropriate to shop your insurance rate? The general rule has always been about every three years. That is, typically, how long it takes for market conditions to change. It allows you, the consumer, to develop a relationship with your company and, in turn, your company to do the same. It also helps to build up a positive record of both payment and loss history. And, from an administrative standpoint, shopping your insurance can be time-consuming. It involves a time component of gathering documentation, providing financials, applications and meetings that just aren’t practical on an annual basis.

Now, as with most rules, there are exceptions:

  • If your premium increases more than 10%
  • If the terms or conditions are changed at renewal and it effects the efficacy of your coverage
  • If your business operations change
  • If you sell, buy or merge companies

These are times that it is appropriate to shop your coverage. This is where having the right “jockey” comes into play. Your trusted insurance broker or agent can advise and walk you through the process. In an ever-changing marketplace, the relationship can give you an advocate and the peace of mind that your livelihood is protected. That security can be (mostly) priceless.