1. Not shopping aroundLet’s be honest with each other - we tend to see business insurance as a necessary evil. We pay our premiums, hoping to never have a claim; but if we do, we just want it to be taken care of. I'm so glad we could be open about this.
Since it’s not exactly a pleasurable experience, the last thing you want to do is shop around, set multiple meetings and phone calls, and chew up time you could spend running your business. But, this is often the biggest mistake small businesses make when it comes to their insurance.
More honesty now - not all insurance is created equal and the pricing differences between policies and carriers can vary greatly. There are a lot of factors that determine the price a business insurance carrier offers a policy for even though it may be for the same coverage. If you don’t shop around to compare policy prices from multiple insurance carriers, you’re likely to miss out on significant savings for your business.
2. Comparing rates instead of quotesEven if you don’t make the previous mistake, many businesses make the innocent mistake of comparing rates and not quotes. This is an easy slip up since many insurance companies trumpet proudly about how they’ll compare rates with their competitors for you. It sounds altruistic, but it’s not exactly as useful as it seems because rates don’t take into all of the factors that make the final insurance policy price customized to your business. Think of rates kind of like baseline estimates. Quotes, on the other hand, are the actual price you can purchase a policy for. Saving business owners from making this common mistake is very important to us. That’s why we make sure to help you compare only actual quotes that you can buy on the spot. Don’t get caught in the trap of comparing rates.
3. Tolerating inefficienciesHow long should it take to get an insurance policy? This is a heavily loaded question because it really depends on what kind of business you are and any complications that may arise. We can tell you that businesses that shop for their insurance through Talage can typically find and buy a policy in less than 10 minutes. Unfortunately, it's not that fast everywhere or for everyone.
If you are in the construction industry, for example, it's probably going to take a little longer because it’s an industry with greater risk associated with it, and insurance carriers usually like to take a closer look at your business before setting the policy price. However, it should still be a smooth process and there should be minimal back-and-forth. If it's taking more than a day or two, something may be wrong, or you’ve been pushed aside. And unless you are paying 100s of thousands of dollars in insurance, if it’s taking anybody a week or more to get you multiple quotes for any industry, that’s far too long.
4. Settling for indifferenceDoes your insurance agent really care about your business? The cold hard truth is that most small businesses are small accounts for an insurance agent. It doesn’t mean your agent is a heartless, money-hungry jerk. They’re probably very nice and professional. The reality is that a small account (and thereby a very little commission) means that it isn’t a high priority or worth the economics of spending a lot of time on (managing or obtaining quotes). A lot of times, insurance agents will utilize a small business unit within the office, or your account will be dealt with as quickly as possible so they can get back to work on larger accounts.
Again, it’s not their fault, it's just economics. If you’re going to feel confident about the quote you’re getting, you need to work with somebody that is willing to put in the time to get you multiple quotes even though you’re a small policy. Or you can always take the shopping and quote comparison into your own hands.