Business insurance: Why responsiveness matters as much as rates
The premiums for our business insurance policies just increased from around $2500 to $6,000.
Very lame!
Apparently this is because our revenue went up quite a bit since the last time we were quoted, which caused the underwriters to increase the premiums even without additional coverage.
So of course, I'm now shopping around for quotes to see if we can do better.
That being said, price is not the only factor I care about.
I also care about responsiveness.
The first insurance agent I used for my business was slow. I'd send him an e-mail or leave a voicemail and it would take days to get a response.
This caused a lot of anxiety when I was trying to get the paperwork work done for a new sub-contract.
So now I'm very sensitive to it.
I want to make sure that any insurance provider I use can:
- Respond quickly with a quote
- Answer any questions I have within a day or two over e-mail
- Provide certificates of insurances (COI) within a day or two
Technology may help improve certain aspects of responsiveness. For example, on our unemployment insurance policy we use NEXT/AP Intego and I can just get a COI from the website. No need to talk to an agent.
But they have been a bit a slow in getting a quote so the prices have to be significantly cheaper for me to make the switch.
When you're evaluating insurance providers for your first 1099 gig, just make sure you include responsiveness as a factor in your decision.
As a solo 1099, your premiums are likely not very expensive, so price shouldn't be the primary driver.
Getting someone to answer your e-mail quickly when you need them too counts for a lot more.
Want the full playbook? Check out Going 1099.