Obtaining Business Insurance Quotes have many facets and are a complex process. One facet that must be scrutinized rigorously in getting your free business insurance quote is that of the hidden cost that affect your overall total cost of insurance.
Getting small business liability quotes for your company is unfortunately something that must be done on an annual basis. Being diligent and prudent about how you obtain your insurance coverages can save you a lot of money in the end.
Let us take a look at how most insurance brokers are compensated in this industry.
- A commission on the premium-depending on the type of coverage the commission is usually in the 15% range
- Broker fees- some brokers at fees to the existing premiums in order to increase their compensation. This is totally negotiable between the client and the broker but normally the client is not aware that it is up for negotiation
- Insurance company overrides-most standard market insurance carriers offer their brokers bonuses, sometimes called overrides, sometimes called contingencies, to their brokers.
- The finance agreement fees-usually this is 1% to 2% in additional interest points
- Fee-for-service contracts-this can be for specific services that you have requested
Knowing some of these hidden costs within your business insurance quotes can help you obtain your goal of getting the most competitive proposal possible. Asking a broker upfront to show you where if any of these areas he or she is compensated in will protect you from the hidden costs within the your total cost of your insurance program.