.jpg "Corin Cook")
A thorough commercial insurance policy is pivotal to protecting you from paying for a large out-of-pocket expense related to your business. So when you’re getting Massachusetts business insurance, there’s a lot you want to take into consideration.
It’s a big decision. So you probably want to shop around, right?
Well what if we told you you shouldn’t do that? Don’t worry, we’re not about to pitch you on why you shouldn’t get quotes with multiple agents because Berry Insurance is the only agency you need. That’s not what this is about at all. Regardless of if we’re a good fit for you or not, it is truly not in your best interest to get quotes from multiple agents.
Doing so will complicate the process, prevent agencies from helping you the best they can, and even limit your insurance options. I know, it seems counterintuitive, but we’ll explain why that is in the article below, and let you know how you should get quotes instead.
Why you shouldn’t quote with multiple MA agents
Getting commercial insurance quotes in Massachusetts and many other parts of the country is not at all like getting personal insurance quotes.
While it often makes sense to shop around for personal insurance, that is not the approach you should take with business insurance. Here’s why:
You could block the market
When you request business insurance quotes with an agency, you “block the market” from other agencies. This essentially means more than one agency cannot quote with the same carrier.
For example, if you request a quote with an agency and they request a quote with X-Company, then you go to another agency and they also request a quote with X-Company, the second agency (and any others after) will not be able to get a quote from X-Company.
This block can only be undone if you sign a BOR, which is a separate process we will get into more below.
Since many insurance agencies work with the same carriers, if you’re quoting with multiple agencies, none of them will have a full range of quotes to look at and compare, so they won’t be able to do their job well and you will have less options for insurance carriers.
You could eliminate the best agency for you
Not every agency is exactly the same. While most can provide a wide range of services, some have expertise in different areas.
For example, at Berry Insurance, we have expertise in several industries, but there are also plenty of companies in industries we wouldn’t even attempt to provide insurance for simply because we know there’s another agency out there whose expertise is a better fit.
However, other agencies might not be as honest. There are plenty of agents out there who might not understand your business’ needs, but will still quote you to try to close a sale.
So if a bad-fit agent quotes your policies, they could block the market from the agency who would actually provide you with the best service.
You could be asked to sign a BOR letter
Many agents will ask you to sign a BOR letter for them.
Simply put, a broker of record letter is a letter that states a business’ intention to work with a specific broker or agent.
By signing the BOR letter, it essentially hires the new agent and fires your old one.
We’ve heard stories about people looking for quotes from various carriers and having an agent tell them they need to sign a form in order to obtain insurance quotes for them. Well this form is actually a BOR and when the prospect signs it, they unknowingly agree to fire their agent and hire the new agent before even getting quotes.
So if you haven’t done your research and are planning on getting quotes with multiple agencies, you may unknowingly end up in a contract with the first agent you go to, which again, may not be the right agency for you.
To learn more about BOR letters, check out this article: What is a Broker/Agent of Record (BOR/AOR) Letter? Why You Should Know what You’re Signing.
You could be making extra work for yourself
Aside from the complications of quoting with multiple agents, it also just takes a lot of extra work and time for you.
You’ll need to make more phone calls, have more back and forth with agents, and fill out more paperwork.
I’m sure owning your business probably already involves a lot of phone calls, back and forth and paperwork, so you might not want to add more to your plate if you don’t have to.
Quoting with one agent will ensure the process is quicker and more seamless for you.
Instead, research and pick an agency before getting quotes
Because you can’t effectively get business insurance quotes from more than one agent, it’s important that you do your research and know who the right agency is for you before you get quotes from them.
I know what you’re thinking: “How am I supposed to know what agency is right for me without seeing the quotes they can offer me?”
Well for one, the right agency for you is more than just the lowest price. And since you have no way of knowing the price, it’s really a great opportunity to consider all of the other factors that matter. This is where some diligent research comes into play. Here are some tips on how we recommend you do this research:
Ask your family and friends for recommendations: If you don’t know who to trust with your business insurance, ask someone you already trust! Do you know any family members or friends who are business owners? They might have a recommendation. Don’t know any business owners? Ask your friends and family who they go to for personal insurance. Chances are, if they have a glowing review of their personal insurance agency, that agency probably also does a great job with business insurance.
Utilize good ol’ Google: When selecting an insurance agency, Google is your friend. You should Google some local agencies and read their online reviews. Make sure they have a high star rating, and sound positive and genuine. Also check out some of your local agencies’ websites to find out more information and learn if they may be a match for you.
Visit some agencies: If you really want to be sure an agency is right for you, visit them in person! Consider their personality, office environment, and staff morale. You can find out a lot about who a company is by seeing them in person.
Ask plenty of questions: The best way to find out if an agency is qualified and right for you is to ask all the questions you would like to know. By covering all your questions and concerns, you can be confident you won’t be getting any unwanted surprises.
Consider asking:
- How long have they been in the insurance industry?
- What do they know about your industry? What services do they offer? (Annual review, audit assistance, 24/7 claims support, mobile app, etc.)
- Who do you call if you have a claim?
- What carriers do they recommend, and why? Is the carrier financially stable?
- What’s not covered by the insurance?
- Are there any restrictions/limitations I should know about?
- What are my responsibilities with the policy?
- Will my policies allow my business to grow?
When doing your research, consider what’s most important to you.
Do you want to work with a small-family owned agency? A big name? An agency close by? An agency that’s easy to reach? A friendly agency that feels like family? An agency that offers additional services?
Keep these values in mind when selecting an agency.
Keep the quoting to a minimum with the right agency:
There are many reasons you shouldn’t quote your business insurance with several agencies.
Between blocking the market, getting stuck with a bad-fit agent, and adding stress and time to your process, it is much better to only quote and do business with one agent.
But if this is the case, then that means it is just that much more important to select the right agent for you, whether it be us at Berry Insurance, or one of the other great Massachusetts agents out there.
Ready to start that process? We suggest you begin by reading this article: What to Look For when Selecting an Insurance Agency or Company, so you know the right type of insurance companies to reach out to.
