|Each facility is rated differently based on location, gross sales, activities. If you do the "day camp" some carriers will not write the exposure. If you are near the coast, some carriers do not wish to write the property. So what we do is broker thru 3 or 4 carriers to get the best price and coverage. Now we have developed relationships with different carriers and have put together programs for the franchisees with similar coverage's. What we have found out is that with each new agent that decides to write franchisees they have a learning curve and have provided quotes with less coverage's or lower limits. Recently we have had franchisees show us quotes from other brokers that have seen no abuse and molestation, no non owned auto, and no theft coverage on the property. This lowers the premium, sometimes considerably.
If you have claims, whether paid or reserves for open claims your insurance premiums will go up and the availability of insurance companies wanting to write your risk goes down.
Some agents do not ask all the pertinent underwriting questions that need to be asked, and could put your business in a predicament where you have a claim that is denied. As you know, we are always asking questions on what activities you are now allowing, what off premise events you plan on participating in as some carriers do not allow this.
Some of you send in your renewal applications when we request them, others my staff chases you down and harasses you until we get it. Then the applications are reviewed and sent out to the market place for quoting. Now believe it or not, we do not quote in our office. The insurance carriers do the quoting and we have to wait for the process which usually takes about one week. An important issue to remember is that the quotes are good for 30 days, so for those of you that are renewing in October or November we should start the application process in August. We send you a completed renewal app with the updated info need being your estimated gross sales for the next 12 months, any changes on the property portion including loss of income, and property limits. We try to time the quote process to land in that 30 day window. We do send to multiple carriers to try to get you the best quote. What we see sometimes is we are held captive by an underwriter not releasing the quote in a timely manner due to not wanting to be the first one out as we usually beat them up for lowering premiums. If they have the best program we understand them not wanting to lose customers but it causes frustration with us and you the customers.
The last issue that we get to deal with is our office going thru all the work to get you a quote and having another agent ask you to sign a "broker of record" letter to be able to represent you in securing quotes. What is not being told to you is that if you sign that letter, we can no longer represent you with any insurance carrier that they present it to. So that letter takes us out of the picture completely as we cannot longer fight for you. If it is with the same carrier that we have quoted you with the premiums are the same, they just take over the quote.
There are only a few insurance companies out there that will quote an indoor inflatable center, American Specialty with Axis Insurance (premiums high), Philadelphia Insurance (last year they decided to accept day camps), Sterling & Sterling with Interstate Insurance soon to be Zurich (they raised their premiums almost double) K&K with New Hampshire (premiums high for sales under $800k) and Thomco with Zurich soon to be Markel (premiums high) .
Cossio Insurance Agency | P.O. Box 5987, Greenville, SC 29606 | Phone: (864) 688-0121 | Fax: (864) 688-0138