liability insurance group buy

[Grant]

Has anyone contemplated a group buy of insurance for exhaust cleaners? Lets say 3-4 companies are due for renewal within a one month period, and as a group, they shop and seek out a discount by bringing other companies in to the insurance company. The discount may actually come from the broker and not the insurance company but it could amount to a nice little sum.

Thoughts??

 

[RJTravel]

Hi Grant,

Thoughts? OK. Won't work. Wish it would, but 'commercial lines' coverage is personal in nature - that is, it is underwritten on the individual risk with its own loss history, experience, stability, line of credit (yes - really), etc. Secondly, the agent or broker typically earns 5 to 7 percent of the premium - hardly to be grasped after when other lines (life, etc) will pay him 80 to 90 percent of first-year premium. Lastly, in most states it is highly illegal for an agent or broker to give back or 'rebate' any portion of his commission - he would be looking for other employment, perhaps falling to lowest level known to man and become a flue cleaner.

Good try though. One suggestion - seek out the newest, greenest agent you can find. He will positively be the most hungry and will be eager to place your business - and not infrequently the carrier will be more inclined to accommodate a young, struggling agent.

Richard

 

[Grant]

Im not suggesting anything underhanded, but rather that there may be an agent that would be willing to work a little harder at shopping for policies if he was getting his 5-7% from eight or ten different companies all with thier own policies and nothing in common other than shopping together.