Are all of your eggs in one basket?
While diversity may be the way to go when investing, it is not necessarily the most practical course of action when buying commercial property and casualty insurance.
The following stats are from firms who have combined multiple lines of insurance with one commercial carrier:
- 89 percent of the firms who saw savings were able to cut the overall cost of their risk management program by a minimum of 4 percent.
- Approximately 35 percent realized savings of 7 to 10 percent.
By combining all of your commercial insurance with one company, you receive a more cost-effective policy than if you were to purchase each product individually from different companies. Not only is it a matter of cost savings and convenience, but having your coverage with one company can also simplify the claims process should a loss occur. So, unlike an investment portfolio where it is better to spread the risk around, your commercial insurance policies are most effective when you keep them all in the same place. If some of your policies are not combined, work with your independent agent to evaluate all of your exposures and the most effective company for your business insurance needs.
Did You Know . . .
The two insurance pairings most likely to display the greatest efficiency when combined with one carrier:
1) general liability with property
2) workers compensation with general liability
