If you’re preparing for insurance renewal, Gregory & Appel’s Scott McGinness and Terry Ford offer these top tips for finding the best carriers for your hospitality business.
1. Get an early start on your insurance renewal.
At least ninety (90) days before the expiration of your current policy is good. The quote process involves much work for the agent and carriers. It takes time.
2. Don’t involve too many agents.
Two should be enough. Carriers lose enthusiasm when they receive duplicate submissions from multiple agents. As a result, they won’t be aggressive in pricing, or they may decline to quote at all if they feel they’re not likely to succeed.
3. Choose an agent with experience in your industry and business,
Whether that’s a hotel, timeshare, resort property, or property management company. They all have unique exposures that an inexperienced agent will overlook.
Again, the best way to go is through an agent involved in your trade association or referred by your peers. At the same time, an agent’s knowledge of your industry helps establish trust between the agent and the carrier, which produces more competitive terms and pricing.
4. Be prepared to provide underwriting information.
The more complete the information, the more trust you establish with the agent and carrier, which results in more competitive pricing.
It will consist of construction details for your building, updates to the roof, electrical and plumbing, mitigation features for wind and flood, vehicles, equipment, and more. And carriers will always require 3-5 years of prior loss experience.
5. Control the bidding process.
It can mean using an RFP process or requiring prior approval of the carriers your agent approaches. This prevents overlapping submissions. And it helps match the agent to the carrier they are most likely to succeed with.
6. Encourage a loss control visit.
Carriers often want to see the property in advance of releasing a quote. Such visits are an excellent opportunity to show your property, display your positive attitude towards loss prevention, and express an interest in the carrier’s loss prevention services.
A positive attitude goes a long way in securing the best possible terms.
7. Don’t choose on price alone.
There can be considerable differences in coverage forms that cost much more, at the time of a loss, than a minor premium difference upfront. Therefore, you need to review coverages carefully and trust that your agent does the same.
For advice and information about insurance for your hotel, resort, and hospitality-based business, contact the team at Gregory & Appel today on 317.634.7491 or visit their website. Their professional team has a deep understanding of risk management and take a consultative approach with every client. The result is a detailed analysis and comprehensive plan designed to minimize risk and ensure business sustainability.
Written by Donna Dailey