How advantageous can be a suitable insurance company?
If you use any form of business, chances are you have some form of business insurance in place. It might be just the legal minimum, it could be any liability or you may have coverage for your business assets and buildings as well.
Apart from travel insurance and marine cargo, most forms of trade policy are annual. They run every year, close to your car and home cover. Curiously, there is no legal obligation to a broker or an insurer can offer you a renewal. If you insure for one year and then decide they do not want to do it again, they may choose to do so. This generally occurs only when the risk has been so many claims that insurers do not want to risk once they are paid more than the premium.
However, in most cases, insurers do not want to have your custom, as a policyholder, for a further year. They did not offer the same coverage and they did not offer the same premium. Their offer of renewal may be under any terms they choose. If you are dealing with an insurance broker companies when they should emphasize the differences in coverage. It is usually fairly easy for you to spot price increases, but a subtle change in coverage (which can be in yours or the favor of insurers) is generally a little harder to spot.
Therefore, insurers want to renew your contract, but when you took the policy in the first place, you can choose you want to move. If your premium has increased by a few percent, then you may well decide to stay put. But, if your premium has increased by more than, say, 5% and you do not have claims, you should really start to wonder if it’s a good deal.
Your broker should offer to renew “in a reasonable time.” Therefore, from ten to four the day before the renewal can not be reasonable, but the broker can still get away with it. But only if they offer the same policy, at an inflated price, you may feel compelled to look elsewhere. They should have sought alternatives and then questioned the insurer holding the competition. Instead, you had to take time from your busy life to do the job for them. And they simply think that reducing their price to match, you will stay with them! Now, remember that your broker receives a commission of 20% on the premium if you choose to stay with them, they really earned their money?
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