You can download the articles I am refering to right here!

Builder & Developer Magazine June 2008:          
Selling Homes In 2008 And Beyond 

Builder & Developer Magazine February 2008:  
Cut Your Insurance Costs Now! 

Builder and Developer Magazine October 2000: 
How To Negotiate Lower Premiums For Your Insurance

Agent and Broker Magazine July 2000: 
Insuring Housing Developers

Or Visit Builder And Developer On Line By Clicking Here!

Insider Secrets:  How to save money on your insurance premiums…

Grant W Davis, President GDI Insurance Agency, Inc., is a 28 year veteran insurance broker.  Grant is a recognized insurance industry expert, author, speaker, marketer, consultant, trainer to the insurance industry, and active insurer of contractors & developers in CA, AZ, and, NV.  He’s worked to save his clients tens of millions of dollars in just the last 10 years.

The good news, or should I say the great news, is that we’re in what is referred to in the insurance world as a “soft market”.  This translates into, “this is an insurance buyers market”.  An example of how the market has changed is an HVAC contractor I just renewed last month.  They have 13 employees, payroll was unchanged since last year, as was their estimated receipts right at $1,700,000 for the year.  This year we obtained liability premium quotes from 6 insurance companies ranging from $27,893 to $21,898.  With one phone call to the underwriter, the final price they paid was $17,757 for the year.  In 2006 $21,311 was the best premium we could find for them.  Their auto fleet this year renewed at $10,324, last year the best we could find was $14,968.  I think back to 2002, when rates were locked in and I felt happy to get a quote at all.  This is the difference between a hard and soft insurance market.   

How does this help you now?  Most insurance companies today will give you mid-year quotes, they are willing to fight for your business, and will offer you great deals to become one of their clients.   That doesn’t always mean you have to change insurance companies either; your current insurance company wants to keep your business too.  When we see a client that can get a lower rate by changing to another company, we always invite the current company to reconsider their pricing.  You would be surprised how often this works. 

We have found Risk Retention Groups (RRG’s) are the most agreeable to working with their clients.  Probably because their clients are also their shareholders.  Admitted insurance companies usually are easy to work with also, they have their minimum earned premium which is typically 90 days worth of premium that we have to work around.  Next are surplus lines companies, AKA Non-Admitted markets.  Non-Admitted markets also have minimum earned premiums.  All have short rate penalties that have to be considered. 

Did you know that when an insurance broker gets you a quote they typically get what I call the “basic” pricing structure?  What that means is right off the computer if we put your information in and get a $10,000 quote that is what I call “the basic quote”.  Once we have the basic quote we then have an underwriter who works for the insurance company review your account and make sure everything is correct and the company wants to insure you in the first place. I bet you don’t know that this underwriter can debit or credit your account 25%.  What that means to you is that the underwriter can decide to insure you for $12,500 or $7,500 based on what the underwriter “thinks” or the underwriter’s “impression” of your account.  And there is more, yes, up to 50% credits or debits with some additional steps.

The biggest mistake I see a prospect or client make is to assume that the original premium they are given as a quote is the best premium the insurance company can offer them.  The second biggest mistake is to not give an insurance company any reasons to give them credits.

Here are a few quick and easy ideas to make sure you get the deal you deserve:

1. Always get more than one quote at renewal time.  Your broker can do it for you; it’s automated and easy for us.  Insider Hint: You should get a list of 4-6 insurance companies your broker is going to approach for you. 
2. If other brokers want to compete for your account, make sure they also give you a list of companies they’re going to get quotes from and that they don’t go to the same insurance companies. Insider Hint: No insurance company gives you their best rate if they feel “shopped”.
3. Make sure you actually see the quotes from the 4-6 insurance companies.  Insider Hint: Make sure your broker actually does the work.
4. Ask your broker what discounts you got, and which ones you didn’t get. Insider Hint: Make sure you know why you did or did not get the discounts; many times the reason a discount isn’t given is incorrect.  If your broker doesn’t talk freely with you about discounts, find another broker.
5. Any money saved on insurance premiums becomes your profit!  So wrap your package.  You have to sell your company to other contractors and consumers don’t you?  Insider Hint: Work with your broker to present your company to insurance companies in the best possible light.
6. Finally, insist on reviewing your broker’s submission before it is sent to an insurance company.  Insider Hint: I bet you have never done that before?  Now that I have said it, it makes sense doesn’t it?  Why would you let anyone tell anyone anything about your company that you haven’t approved?  This one technique will save you more money than any other single idea I can give you.

How do you go about doing all this?  Again, great news; your insurance broker will do it for you!  It starts with you phoning your broker.  Explain in detail that you expect at least a 25% discount!  Hold your cards close to your chest; tell your broker you are getting other quotes even if you don’t get around to it.  A good broker knows competition drives prices down and should always be working for you.