Many buyers tend to treat arranging insurance like shopping for a car or getting estimates to repair the roof. They seek multiple quotes from several agents at renewal with the concentration solely on price. Market competition tends to place a greater emphasis on what the premium is going to be rather than the adequacy of coverage and the “qualifications” of the agent/broker. Unfortunately the potential end result of purchasing insurance this way doesn’t manifest itself until a claim occurs and the client discovers they have limited, or in some cases, no coverage for the claim.
Insurance, whether business, personal, or employee benefits is a complex subject. Not all policies or coverage forms are the same leading to potential gaps in coverage depending on your particular exposures. Selecting a qualified agent/broker who takes the time to learn and understand your particular needs and exposures should be a business owner or property owners first priority. Building a long-term relationship with them as a partner will allow them to search markets to provide you with the right coverage at a competitive premium, not necessarily the lowest premium. Involve them in your business or personal planning so they can develop long-term strategies to help keep you protected and provide a reasonably stable insurance cost for your budgets.
Everyone needs to manage cost, but when you focus heavily on premiums you risk missing or underestimating other direct cost such as policy limitations or exclusions that could far exceed the potential premium savings you think you’re getting.