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  • 5 Things to Avoid to Save Money on Insurance

    Brian Pilarski, Commercial Insurance Advisor at Brown & Brown of Detroit

    No one likes to overpay for something.  We all want a fair price and good value.  With insurance, we see countless commercials stating that we may be overpaying for our insurance.  Are we? 

    When purchasing insurance, we all seek strategies to help lower our premiums without sacrificing coverage integrity.  Regardless of the type of insurance- personal, commercial, life, health- we do not want to overpay.

    The constant advertising by auto carriers about saving money on insurance has contributed to a common belief that insurance is an “expense” issue.  We are all being told multiple times a day that we can save money (we are overpaying).

    It is more difficult to benchmark commercial insurance pricing and figure out if you are overpaying or not.  The process of quoting commercial insurance takes hours, equating to three to four months of time to determine if the price being paid now is a good value or not.

    A common concern we hear when we meet a new owner/client for the first time: “We are paying way too much for our commercial insurance. We have policies we don’t even need.” 

    To find what whether that is true requires information and time from the business owner.  The process is dependent on a lot of data being exchanged. 

    Commercial insurance pricing is different amongst all kinds of businesses, even within the same industry.  The specific characteristics of each business and the various risk to be insured are almost infinite. Because there is not a uniform set of pricing structures and risk profiles, we cannot attempt a uniform approach to insurance price savings. 

    However, many owners, with the best of intentions, apply common strategies that hurt their outcomes.  In fact, some of the strategies provide adverse pricing, not better, with insufficient coverage. 

    If you want to legitimately ensure you are receiving true value in your insurance spend, adjust your strategies to best optimize your results. 

    Stop Doing These 5 Things:

    • Stop “Bidding Out” Insurance Every Year
    • Stop Confusing the Marketplace (To Your Detriment)
    • Stop Skipping Out on Loss Control Meetings (Senior Leaders/Owners)
    • Stop Shortchanging Your Time Investment to the Quoting Process
    • Stop Treating Your Agent as a Vendor


    In future posts, I will expand on each of the five “Stop” items, outlining why these strategies are providing a negative impact to the outcomes desired.  I will also add the counteractions you should take to optimize the outcomes for your business insurance.

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