Purchasing insurance for your business can be extremely overwhelming. In this guide, we will answer questions business owners may have when searching for insurance quotes. This step by step guide examines the necessary information insurance carriers require in order to quote and the estimated timeframe, from start to finish, for the policy to go into effect. The very first task to complete is essential in understanding the purpose for purchasing insurance coverage…

Step 1: Evaluate your risk. (~1 hour)

Research the top risks your services and industry faces. Additionally, think of unique risks to your business. This in-depth risk assessment will help you & your agent determine the type of insurance coverage needed. It is a critical process for evaluation of potential risks associated with your business including claims likelihood and premiums for the risk.

Where is the business located: online, in person or both
What are the common weather events in the area? i.e. flooding, hurricanes, earthquakes, tornados…
Do you have employees, including contractors or temporary workers? If yes, how many?
Do you have safety training & background checks?
What lawsuits is your industry prone to?
How fast will your business grow? Will you open more locations soon? Increase revenue significantly?
Does your business operate any potentially dangerous equipment?
Do you process or store sensitive client data?

Step 2: Intro call. (~15 mins)

In this intro call with one of our experienced agents, feel free to ask as many questions about the agency, carrier options and any exposures to loss you may be concerned about. They will advise you on what kind of coverage you’ll need for your business. The agent will proceed to ask questions about yourself and the business such as services and/or products offered. We will most likely not go into detailed questions yet at this stage. We are just trying to get a feel for what type of exposures your business has so we can reach out to insurance carrier underwriters about a market for you.

Step 3: Carrier outreach. (1-3 days)

As independent insurance agents, we have contracts with multiple insurance companies. Unlike captive agents who only work with a single carrier, we have the ability to reach out to a couple different carriers to see which would be the best fit for your type of business. It can take a bit of time for the underwriter to get back to us, especially if it is a high risk where they need to seek approval first from their superiors. But it’s always best to have as many options as possible especially since no two carriers offer the same exact coverage.

Step 4: Application. (1 day – 2 weeks, varies)

In order to retrieve a quote, your insurance agent is required to provide the insurance carrier with a very thorough application. Our agent will email the application for you to review and will be ready to answer any questions you may have. If you’d like, our agent can set up an in person meeting to go over the application with you. Answering these questions can take some time as they’re very detailed and it’s important to answer correctly so the quote is accurate. We will also need a copy of your current declarations page with coverage info for proof of current coverage, Additionally, loss runs (a history of your prior losses) are requested from your old agent. Sometimes, the agent may be able to reach out directly to the insurance carrier. The timeframe on this varies based on how long it takes to retrieve all the info necessary.

Here are just a few of the questions you may see on an application for a quote:

Is the business in an LLC or any other type of entity?
What are the names of any owners, officers, members or trustees?
What is your FEIN #?
How long have you been in business?
What is your payroll?
What products or services do you offer?
What is your annual revenue and profit margin?
Do you own or lease your building? Are you solely based online? Do you meet in person with clients?
Do you own or lease any business equipment property?
How is the equipment maintained?
Are there fire/burglar alarms?
What measures have been taken to mitigate weather risks?
Does your business own or lease vehicles?
Have you had any prior claims?
Have you ever been denied insurance coverage?
Have you had any prior lawsuits?
Do you have waivers & disclaimers?
What is your credit rating?
Have you experienced any financial difficulties or bankruptcies?
What is the reason for seeking new insurance coverage?
How often do you conduct safety audits?
Have you experienced any data breaches? What have you done to safeguard data?
Is your work seasonally impacted?
They may also request bank statements.

Step 5: Request & Receive Quotes. (within 2 days or 2 weeks…)

If you have a harder to place risk, large company, many employees, custom coverage requests or are located in a high risk area, these factors can impact how quickly you’ll receive the quote. In the event that you have a harder to place risk, we cannot quote instantaneously online and must request a quote from a surplus lines carrier. The underwriter at the insurance carrier may need additional approval before quoting which adds more time to the process. They may also have more questions for the insured, so there’s a possibility of some back and forth between all parties. This is just another reason why working with an expert agent versus securing coverage online is best. You may be able to secure coverage by purchasing insurance online in 24 hours, but how can you be sure the coverage is accurate?

Step 6: Present Quotes & Reviewal. (depends on the client)

There’s no way of knowing how long a client will choose to evaluate the quote options. Some individuals choose to proceed to the next step rather quickly, while others like to take their time deciding. It’s important to keep in mind that quotes are only valid for a certain number of days. That number depends on the insurance carrier. During the presentation of quotes, your agent will present the quotes with carrier & coverage info as well as pros and cons.

Step 7: Signing Forms. (1 day- 1 week)

If you decide to move forward with our quote, your agent will send documents via our encrypted e-signature platform. If there are revisions or questions, the process can take longer.

Step 8: Submit bind request (1 day)

Once your agent has the signed documents and everything required to request a bind, the agent will email everything to the insurance carrier. We either receive a binder (for proof of insurance) within the same day or within a week, it depends on the carrier. The effective date of the policy will be whatever date submitted on the application, even if you don’t receive proof of insurance until a few days later.

Step 9: Policy is in effect & Inspection (within 30 days)

Note: not all risks will require an inspection. This is a case by case determination by the insurance carrier that depends on a few factors such as class or industry risk type. You will also receive your policy (about 50-70 pages) electronically within a month of the effective date.

If you need help securing proper coverage for your business, reach out today by email: insure@mcsheainsurance.com or call 508-420-9011.

Our goal at McShea Insurance Agency is to make insurance less complicated for our clients. We connect clients with business insurance carriers who have a market for the specific type of business you’re looking for. We will always provide unbiased facts regarding each carriers and quotes pros and cons. Our first priority is always our client’s best interest.

Step By Step Process for Quoting: Business Insurance