Before You Hire an Agent for Your Commercial Insurance

Many small business owners make the mistake of placing their commercial insurance with the same agent they purchase their personal home/auto insurance from. A few potential problems exist with this decision.

Does Your Agent Have Commercial Experience and Expertise?

The personal lines agent may not have the experience necessary to address all of the important exposures that exist in a commercial business, vs. a personal household. These specialized commercial exposures include topics such as pollutant cleanup and removal, hired and non-owned auto, and business interruption.

Does Your Agent Have Access to More Than One Market?

Many personal lines agents are 'captive agents', who sell insurance from only one company. Often, a personal lines agent will place your commercial policy with the same company that provides your home/auto insurance, instead of a carrier that specializes in commercial coverage. Independent insurance agents, or brokers, represent several companies and are able to place insurance policies for their clients with the company that offers the best coverages to protect their individual businesses.

Multiple Choices = Better Pricing.

Having access to multiple insurance companies helps an agent to obtain the best coverage at the best price. When your agent is able to compare multiple policies for you, he can make recommendations on the pricing and the range of coverage features available.