ÌìÃÀÓ°Ôº

If you submit multiple applications to different brokers, chances are those brokers are tapping the same insurers for a quote. Therefore, you’re saturating the market. Here’s why you should stick with one broker when getting a quote and what questions to ask.

Turning to an insurance broker to shop your rate and find the policy your business needs is a wise way to go. But if you habitually request quotes from more than one broker simultaneously, you may be hurting your chances of getting the coverage you need at an affordable price.

Unlike buying directly from an insurance company or through an agent who works for one insurance company, a licensed small business insurance broker works for you. They are an intermediary between you and the insurance provider underwriting your policy. By putting your interests first and working with multiple insurance providers to find the coverage that suits your needs, brokers can get you the protection you need at a reasonable annual premium. They do that by leveraging their relationships with several insurance providers.

But here’s the thing: If you submit multiple applications to different brokers, chances are those brokers are tapping the same insurers for a quote. Therefore, you’re saturating the market. And red flags go up when an insurance carrier receives multiple applications for the same business but through different brokers, especially if the information you provide in those applications is inconsistent. An insurer may regard you as too great a risk and will either not offer your business a policy or, if they do, at an elevated cost.

Five questions to ask a business insurance broker

When you do choose a business insurance broker to work with, whether it’s for a standalone general liability insurance policy or a more comprehensive bundled policy, such as , here are five questions to ask to know what you’re covered for and ensure you’re getting value for your money.

1. What does my policy cover and what is excluded?

Your broker should walk you through the policy details and highlight what your business is covered for and what is excluded from your coverage. They should identify gaps in your coverage and make recommendations to address them so you’re not underinsured.

2. What are the coverage limits and deductibles?

With any insurance policy, there are coverage limits and deductibles. A coverage or policy limit is the maximum amount your insurance provider will pay for an insurable loss during the policy’s term. The deductible is the amount you must pay if you file a claim before the insurance provider pays out. You have the option to choose both the coverage limits and deductibles on your policy. 

3. What happens if I need to file a claim?

We purchase insurance for one reason: to have financial support if something goes wrong that’s out of your control, like a vicious windstorm that damages the roof of your office, or because of an accident such as a visitor to your office tripping, falling, and suffering an injury. 

It’s vital to understand what your brokerage’s claims-filing process is. When you file a claim for damage or loss, your broker helps manage your claim and is your advocate who ensures your insurance provider addresses and settles the claim promptly.

4. Can you provide me with a risk assessment?

A broker should take the time to understand your business and its potential risks to provide you with a customized policy that adequately addresses them. They should also help reduce your liability exposures by recommending ways to mitigate the potential pitfalls you face.

5. How long does it take for you to respond to questions I have?

Ask your broker when you can expect to hear from them if you email or call them with a question or request. And who will step in on their behalf to assist you if they’re unavailable? That is particularly important if you must file a claim regardless of the day or time. 

The benefit of getting business insurance online

Getting a free quote online for your construction or general contracting business offers the best of both worlds: a quick, convenient digital application that takes minutes to complete and the opportunity to speak with an experienced broker who can customize the policy to suit your needs with the maximum amount of protection at the lowest price available.

Before your current policy is up for renewal or as it comes due for renewal, try getting a free quote for your business with one brokerage and explore your options. If you don’t find what you’re looking for, you gain the benefit of experience and can move forward with a different broker.

Aharshan Thangarasa is a licensed broker and team lead, contractors at Zensurance, Canada’s leading source for small business insurance. Get a free quote for your insurance needs by visiting .