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LICENSE RECORDS: Check
the license records on any agent or broker you utilize. Your state
insurance department may make pending or past disciplinary activity
available, along with records of the companies he or she is authorized
to represent. Many states now make this available online. Go
to the NAIC listings
to find yours. FINANCIAL RATINGS: Check
the financial ratings and state of domicile for any surplus lines
carrier utilized and ask specifically why the carrier was used.
Best's, a leading industry
financial source, now
Avoid auditable insurance policies whenever possible.
The larger trade associations very often have the leverage to obtain business insurance products at sharply reduced rates, and some with much better insurance terms. Many can save you enough money to more than offset the costs of membership. "PEO's" (Professional employer organizations) are still to some extent in infancy, but represent a promising means of outsourcing the purchase and management of business insurance.
If you lease your building, the owner can provide a waiver of subrogation which prevents your being sued by his/her fire insurance company to recover payments to repair damage to the building. (When you are thought to have had responsibility.) This is normally available at no cost and is common practice.
They can sometimes save premium dollars, but not always. Check potential loss costs & loss frequency against dollar savings before you jump at this.
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