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  • #1

    Building Insurance question

    I have no idea how Insurance brokers make their income. Do they get a straight salary, commission on the amount of the insurance, a combo of both.

    Given that I don't know this:

    I got the renewal for my Building Insurance and Workmen's Comp and it went up $500 from last year. I have been with my current insurer for about 10 years. While the renewal was sitting on my pile I received a call from another broker who wanted to see if he could meet with me and get me a better deal than the one I currently have.

    I received his proposal yesterday and it was $3600 LESS than my current coverage. (His proposal offers the exact same coverage).

    My query is should my current insurer have been trying to find me a better deal or since I never asked her to find a better deal or mentioned that I was paying too much was she fine not trying to get a better deal for my organization?

    I don't know how the insurance broker game works. Do they look over their accounts every year and try to get less expensive deals or just sit and wait until their clients ask them to find a less expensive deal?

    Do I give my current insurer the chance to match? Even though she didn't attempt to get me a better deal?

    Thanks.
    "I lingered round them, under that benign sky: watched the moths fluttering among the heath and harebells, listened to the soft wind breathing through the grass, and wondered how any one could ever imagine unquiet slumbers for the sleepers in that quiet earth."
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  • #2
    yes, you give them the chance to match OR BEAT the offer you have if only to avoid having to do any work
    "You know what's wrong with America? If I lovingly tongue a woman's nipple in a movie, it gets an "NC-17" rating, if I chop it off with a machete, it's an "R". That's what's wrong with America, man...."--Dennis Hopper

    "One should judge a man mainly from his depravities. Virtues can be faked. Depravities are real." -- Klaus Kinski

    Comment

    • #3
      P&C brokers get paid a commission only on annual revenues, no salary. If your premium goes up, they make more money off you. But first year commissions are much more than annual renewals, so there's little incentive for your existing P&C broker to bother with finding you a better deal, since they're not making as much any more off you. They usually only spur themselves to act once you announce you're leaving them -- then whoa, look out! You've never seen someone do so much work in so little time.

      Are you sure the proposal is "exactly the same?" What are the insurance companies here?

      Comment

      • #4
        I've had the same predictament with some of my business insurance, as well.

        When you see such a huge difference, make sure the coverages are the same.

        If you know they're the same, unless this person is instrumental to the library, I make the change and call them and say, "You can try to earn my business back next year. I'll be waiting for you call. Do not expect me to call you."
        "Looks like I picked a bad day to give up sniffing glue.
        - Steven McCrosky (Lloyd Bridges) in Airplane

        i have epiphanies like that all the time. for example i was watching a basketball game today and realized pom poms are like a pair of tits. there's 2 of them. they're round. they shake. women play with them. thus instead of having two, cheerleaders have four boobs.
        - nullnor, speaking on immigration law in AZ.

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        • #5
          Originally posted by revo View Post
          P&C brokers get paid a commission only on annual revenues, no salary. If your premium goes up, they make more money off you. But first year commissions are much more than annual renewals, so there's little incentive for your existing P&C broker to bother with finding you a better deal, since they're not making as much any more off you. They usually only spur themselves to act once you announce you're leaving them -- then whoa, look out! You've never seen someone do so much work in so little time.

          Are you sure the proposal is "exactly the same?" What are the insurance companies here?
          Thanks Revo and Fresno.

          Current insurer is Penn National. New proposal is Donegal Insurance.

          I called my current broker this morning to let her know about the new proposal and she will get back to me next week with what she can find.
          "I lingered round them, under that benign sky: watched the moths fluttering among the heath and harebells, listened to the soft wind breathing through the grass, and wondered how any one could ever imagine unquiet slumbers for the sleepers in that quiet earth."

          Comment

          • #6
            Originally posted by In the Corn View Post
            I've had the same predictament with some of my business insurance, as well.

            When you see such a huge difference, make sure the coverages are the same.

            If you know they're the same, unless this person is instrumental to the library, I make the change and call them and say, "You can try to earn my business back next year. I'll be waiting for you call. Do not expect me to call you."
            I called her to see if she can better the proposal. We'll see.
            "I lingered round them, under that benign sky: watched the moths fluttering among the heath and harebells, listened to the soft wind breathing through the grass, and wondered how any one could ever imagine unquiet slumbers for the sleepers in that quiet earth."

            Comment

            • #7
              Originally posted by Fresno Bob View Post
              yes, you give them the chance to match OR BEAT the offer you have if only to avoid having to do any work
              When I read Mith's post my thought was no way do I let them keep my business if they only meet the new rate. We are not talking about a 600.00 slip up. $3600.00 is a lot of money.

              Then I read your response. I have high respect for your business comments. So this caused me to question my thought process. Could you expand on your statement. I am not fully understanding your position. How much extra work can it be? Or what am I missing.

              Comment

              • #8
                Originally posted by Gregg View Post
                When I read Mith's post my thought was no way do I let them keep my business if they only meet the new rate. We are not talking about a 600.00 slip up. $3600.00 is a lot of money.

                Then I read your response. I have high respect for your business comments. So this caused me to question my thought process. Could you expand on your statement. I am not fully understanding your position. How much extra work can it be? Or what am I missing.
                I'm sure that Mith is going to have to go through some sort of process to change insurers, fill out some new forms, change some reporting, set them up as a vendor in the city system, etc, it might be trivial or it might be significant. I'd tell my existing insurer of the offer, and ask by how much they can beat it by to keep me as a customer.
                "You know what's wrong with America? If I lovingly tongue a woman's nipple in a movie, it gets an "NC-17" rating, if I chop it off with a machete, it's an "R". That's what's wrong with America, man...."--Dennis Hopper

                "One should judge a man mainly from his depravities. Virtues can be faked. Depravities are real." -- Klaus Kinski

                Comment

                • #9
                  Originally posted by Mithrandir View Post
                  Thanks Revo and Fresno.

                  Current insurer is Penn National. New proposal is Donegal Insurance.

                  I called my current broker this morning to let her know about the new proposal and she will get back to me next week with what she can find.
                  wait, who? Are these the insurance brokers, or the insurance companies?

                  Comment

                  • #10
                    Originally posted by revo View Post
                    wait, who? Are these the insurance brokers, or the insurance companies?
                    Insurance companies. Broker is a small local company.
                    "I lingered round them, under that benign sky: watched the moths fluttering among the heath and harebells, listened to the soft wind breathing through the grass, and wondered how any one could ever imagine unquiet slumbers for the sleepers in that quiet earth."

                    Comment

                    • #11
                      Originally posted by Mithrandir View Post
                      Insurance companies. Broker is a small local company.
                      Gotcha. OK, wait for the second proposal and see how they match up.

                      Comment

                      • #12
                        Well my current broker came through with a policy that is almost $1000 less then the other broker supplied. Signed on the dotted line this morning.
                        "I lingered round them, under that benign sky: watched the moths fluttering among the heath and harebells, listened to the soft wind breathing through the grass, and wondered how any one could ever imagine unquiet slumbers for the sleepers in that quiet earth."

                        Comment

                        • #13
                          Originally posted by Mithrandir View Post
                          Well my current broker came through with a policy that is almost $1000 less then the other broker supplied. Signed on the dotted line this morning.
                          So if I read this right broker B beats broker A by $3600.00 and then broker A beats broker B by $1000.00?

                          Comment

                          • #14
                            You can donate my $500 cut to Jason for the site
                            "You know what's wrong with America? If I lovingly tongue a woman's nipple in a movie, it gets an "NC-17" rating, if I chop it off with a machete, it's an "R". That's what's wrong with America, man...."--Dennis Hopper

                            "One should judge a man mainly from his depravities. Virtues can be faked. Depravities are real." -- Klaus Kinski

                            Comment

                            • #15
                              Originally posted by Gregg View Post
                              So if I read this right broker B beats broker A by $3600.00 and then broker A beats broker B by $1000.00?
                              Correct!
                              "I lingered round them, under that benign sky: watched the moths fluttering among the heath and harebells, listened to the soft wind breathing through the grass, and wondered how any one could ever imagine unquiet slumbers for the sleepers in that quiet earth."

                              Comment

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