When Should Small Business Owners Switch Insurance Companies?

Managing a small business comes with endless challenges—and great rewards. One of the main issues is keeping your overhead as low as possible. The cost of your business insurance should be reviewed yearly—savings could be possible. If you’ve been with the same insurance provider for years, you might assume you’re getting the best deal—but are you? Switching insurance companies can improve coverage, lower costs, and improve customer service. Here’s when and why you should consider changing, especially to an independent agency.

Signs It’s Time to Switch Business Insurance Providers

Poor Claims Experience

If you’ve had trouble processing claims efficiently or received poor customer support during a claim, it may be time to move on. Delays denied claims without clear explanations, or difficulty reaching your provider are all red flags.

Difficult Customer Service

If your insurer is unresponsive or unhelpful, you shouldn’t settle. Good insurance providers offer clear communication, self-service options, and responsive agents who prioritize your needs.

Your Agent Leaves or Retires

If your trusted agent leaves, you might find that the new representative doesn’t offer the same personalized service. If the agent who understood your business was the only thing holding you to an insurance provider that otherwise lacks potential benefits and offerings, this could be a good time to reassess your options.

Increasing Premiums Without Justification

Many large insurance companies apply rate hikes, even if your business has remained low-risk. If you have signed up with one of the biggest insurance companies, they can technically afford to lose your business. A smaller, independent agency may offer more stable pricing and competitive rates.

Lack of Customization

If your business has grown or changed, but your insurance coverage hasn’t evolved, you might be underinsured or paying for unnecessary coverage. Independent agencies often provide more flexible policy options and can respond faster than larger corporations.

Your Insurer Changes Terms

Sometimes, insurance companies change their coverage offerings, exclude certain risks, or stop servicing your industry. If your provider no longer meets your needs, it’s time to explore alternatives quickly.

You Get a Better Recommendation

If another business owner you trust raves about their insurer, it’s worth considering. First-hand experiences can provide valuable insights into a company’s service, pricing, and claims process.

Benefits of Switching to an Independent Agency

Many small business owners assume that sticking with a big-name insurance provider is the safest choice, but independent agencies often provide distinct advantages:

Lower premiums: Independent agencies typically have lower operating costs, allowing them to pass savings on to their customers.

Personalized service: Unlike large insurers, independent agents take the time to understand your business and provide customized solutions.
Greater flexibility: Smaller agencies offer more custom policy options, ensuring you only pay for what you need.
Faster claims processing: Independent providers often have a reputation for handling claims more efficiently, with less red tape.
Local expertise: Independent agents understand the risks and regulations affecting your region and industry.
More stability: Unlike blanket rate increases, smaller insurers adjust pricing based on local market conditions and individual risk assessments.

How to Switch Business Insurance Companies

If you’re considering a switch, follow these steps to ensure a smooth transition:

Step One: Research New Providers

Get quotes from at least three companies and compare coverage, pricing, and customer reviews.

Step Two: Purchase New Coverage Before Cancelling the Old

Avoid any gaps in coverage by ensuring your new policy is active before ending your current one.

Step Three: Notify Your Current Provider

Start the cancellation process. Ask about any penalties, refunds, or outstanding claims.

Step Four: Obtain Proof of Insurance

Ensure you have updated insurance documentation for clients, vendors, landlords, or other necessary parties.

Step Five: Enjoy Better Coverage

Move forward with business operations, knowing you’ve researched and now have the best insurance policy to fit your needs and budget.

Considering Switching Insurance Companies? It’s Worth the Effort.

Switching business insurance providers can seem like a hassle, but it’s worth the effort if you’re paying too much, receiving poor service, or not getting the coverage you need. Independent agencies can offer better pricing, personalized service, and flexible coverage options—making them an excellent alternative to large insurers. If you recognize any warning signs mentioned above, now might be the perfect time to explore new possibilities and secure better protection for your business. Our independent insurance agency prides itself on customer care and satisfaction. Call in to speak to one of our business insurance agents and see how we can improve your coverage today.

The Hidden Costs of Skipping Insurance

This April is the 22nd anniversary of Financial Literacy Month, a time that inspires us to secure our future with sound financial planning, budgeting, saving, and investing. It’s an excellent opportunity to improve your financial education and be more secure in your goals. For example, many people are unaware of the hidden costs of skipping insurance, making them financially vulnerable.

Why Consider the Cost of Insurance in My Financial Planning?

Insurance delivers financial security by providing support during significant loss or danger. The apparent “cost savings” you may think you achieve by going without is often sadly misguided. Without proper insurance, one runs a high risk of financial setbacks.

High medical bills: Without health insurance, you’re responsible for the full cost of medical treatments, including emergencies, hospital stays, and prescriptions.
Legal fees: If you’re involved in a car accident or lawsuit and lack proper coverage, you could face significant legal fees.
Property damage: Without homeowners’ or renter’s insurance, you could pay for repairs or replacements after damage from weather disasters, theft, or accidents you have no way of predicting.
Loss of income: In the event of an injury or illness, not having disability insurance could leave you without a source of income while you recover.
Financial burden on family: Without life insurance, your family may struggle with expenses, including debt repayment, funeral costs, and day-to-day living expenses after your death.
Penalties and fines: Some types of insurance are actually considered mandatory, like health insurance. They can carry penalties for non-compliance with state or federal regulations.

Encouraging Long-Term Financial Stability: Types of Insurance

Getting familiar with the different types of insurance is a good idea. These policies can help you in your time of financial need to ensure long-term economic stability.

Personal Insurance

Health insurance is vital for managing healthcare costs and ensuring access to necessary medical treatments. With the rising cost of medical care, health insurance helps cover doctor visits, hospital stays, prescriptions, and preventive care expenses. It also protects you from high medical bills, ensuring you receive the care you need without devastating financial strain.

Life Insurance

Life insurance offers financial protection for your loved ones in the event of your death. It ensures your family can maintain their lifestyle and cover essential expenses, such as mortgage payments, education, and daily living expenses, even after you’re gone. Life insurance can also help with funeral expenses, reducing the burden on those you leave behind. With various policy options available, life insurance is essential for safeguarding your family’s financial well-being.

Car Insurance: A Legal and Financial Necessity

Car insurance isn’t just a requirement in most states—it’s also a safeguard against costly accidents. Without it, you could be held personally responsible for damages, medical bills, and legal fees. Even if you’re a safe driver, unexpected events like theft or severe weather can leave you with repair costs that far outweigh the price of a monthly premium.

Homeowners and Renters Insurance: Protecting Your Property

A home is one of the biggest financial investments you’ll ever make. Homeowners insurance protects you from disasters like fires, floods, and theft, preventing financial devastation and even homelessness.

If you’re a college student or your child is heading to university for the first time this year, moving into an apartment or dorm carries risks that can be covered by renters insurance. The landlord’s policy does not cover the cost of replacing your personal belongings should they be lost due to theft, fire, or other disaster.

Pet Insurance: Avoiding Unexpected Vet Bills

Owning a pet comes with both love and responsibility. Veterinary care can be expensive, with emergency procedures costing thousands of dollars. A sudden illness or accident could force you to choose between financial hardship and your pet’s well-being without pet insurance. A monthly premium can help cover unexpected medical expenses, giving you peace of mind.

Travel Insurance: Essential for Summer Getaways

Planning a summer vacation in the next few months? Travel insurance can protect you from trip cancellations, lost baggage, and medical emergencies abroad. Without it, a sudden illness, flight cancellation, or lost passport could turn a dream trip into a financial disaster. Travel insurance costs are minimal compared to the potential losses you might face.

Insurance: A Smart Financial Decision

Going without insurance brings financial risks that far outweigh the savings. As we’ve covered today, insurance brings:

Financial predictability – Helps protect against unexpected costs.
Peace of mind – Ensures you’re covered in case of emergencies.
Long-term stability – Prevents significant out-of-pocket expenses that could derail your financial goals.

This Financial Literacy Month, take the time to review your personal insurance policies and ensure you’re adequately covered. A little planning now can save you from major financial setbacks later.

If you want to enroll in new or expanded insurance coverage, contact one of our experienced personal insurance agents for a free consultation today.

6 Reasons Why Water Heaters Fail

It’s no fun going without hot water. That’s especially true when the seasons change and temperatures take a dip. But like nearly every otherappliance in your house, water heaters fail. And that can lead to cold showers — or even worse, a water leak. Here are 6 telltale signs you have a failing water heater: You only […]

The Beginner’s Guide to Short-Term Rentals

From a stylish urban loft to a cozy country cottage… booking a short-term stay is a hot trend (and a great way to travel like a local.) Maybe you’ve considered becoming a host yourself. If so, you’ve probably wondered: Is it safe? Can I actually make money doing this? What amenities should I offer my […]

3 Business Insurance Expenses to Write Off on Your Taxes

It’s tax season once again! As a business owner, you are likely looking for ways to maximize deductions and reduce taxable income. Fortunately, several business insurance policies qualify as tax-deductible expenses under IRS rules. If an insurance policy is both ordinary (common in your industry) and necessary (helpful for business operations), you may be able to deduct the full cost of the premium. Help protect your business while optimizing your financial strategy with these three tax write-off possibilities.

General Liability Insurance: Protection Against Lawsuits

Every business faces risks, from customer injuries to accidental property damage. General liability insurance helps cover legal costs, medical expenses, and settlements if your business is sued. Fortunately, your premiums for this policy can be deducted as a necessary business expense.

Why Is General Liability Insurance Tax Deductible?

It’s a fundamental cost of doing business, protecting against unforeseen claims.
Most commercial leases and contracts require businesses to carry this coverage.
It helps mitigate financial losses from lawsuits, preventing potential bankruptcy.

How Much of My General Liability Insurance Premium Can I Deduct?

The full cost of your premium is typically deductible, provided the policy is for business purposes only. If you use the insurance for a business that operates from home, you may need to allocate only the business portion of your premium as a deduction.

Workers’ Compensation Insurance: Protecting Your Employees

If you have employees, you’re likely required by state law to carry workers’ compensation insurance. This coverage provides financial support for employees who experience work-related injuries or illnesses. The good news? The premiums you pay for workers’ compensation insurance are tax-deductible.

Why Is Workers’ Compensation Insurance Tax Deductible?

It’s legally required for most businesses with employees.
It helps cover injured employees’ medical expenses, rehabilitation, and lost wages.
It reduces financial risk in the event of workplace accidents.

How Much Can I Deduct Workers Compensation?

You can deduct the full amount of your workers’ compensation premiums, provided the policy strictly covers employees (not personal coverage for yourself). Take the example of a construction company in California that had an employee suffer a fall on-site. Because their policy was intact, workers’ compensation insurance covered the employee’s medical expenses and some of their lost wages. Not only did the business avoid a significant financial hit, but it was also able to deduct the cost of the insurance premium on its taxes, lowering its overall tax burden.

Business Interruption Insurance: Safeguarding Against Revenue Loss

Unforeseen disruptions—natural disasters, fire damage, or forced closures—can significantly impact your revenue. Business interruption insurance helps replace lost income during these events, ensuring financial stability. The IRS considers this coverage an essential business expense, making the premiums deductible.

Why Is Business Interruption Insurance Tax Deductible?

It compensates for lost income if your business cannot operate due to covered events.
It covers rent, payroll, and operating expenses during forced closures.
Many businesses rely on this coverage to stay afloat after disasters.

How Much of My Business Interruption Insurance Can I Deduct?

The entire premium for business interruption insurance is typically deductible, provided it is solely for business use. Take the example of one insurance client in Florida who was forced to shut down for several weeks due to hurricane damage. Business interruption insurance covered lost income, rent, and payroll costs, allowing the restaurant to recover. By deducting the premium cost, the business further minimized its tax liability. This brings a double benefit when it comes to recovering from unforeseen costs.

Maximizing Your Tax Deductions with Business Insurance

Writing off business insurance premiums on your taxes is a smart way to reduce taxable income while ensuring financial protection. When filing your taxes, consider working with a tax professional to ensure you take full advantage of all eligible deductions. By investing in the right insurance policies, you’re not only protecting your business from risk but also making a financially responsible decision that benefits you during tax season. Contact one of our business insurance agents to review or expand your coverage. We are also available to answer any questions regarding your policy if you believe it covers personal and business risks.

Are We Getting Enough Sleep to Safely Drive?

Sleep-deprived drivers are turning America’s roadways into danger zones with potentially costly consequences. That’s according to the findings of a new survey sponsored by Erie Insurance examining drivers’ sleeping and driving habits. The survey found that a majority of Americans are sleeping fewer than seven hours per night, the minimum nightly amount recommended by the […]

6 Things NOT to Say During a Job Interview

Whether you’re right in the thick of it with job interviews or you’re prepping for a future career change, knowing what to say — and more importantly, what NOT to say — during an interview can sometimes make or break your chances. So, to help avoid any awkward moments while also impressing your interviewer, review […]

5 Insurance Considerations for Your Home Remodel

Planning a home remodel? April is National Rebuilding Month, after all. Whether adding space, upgrading features, or increasing functionality, your renovation could impact your homeowner’s insurance. Some updates may require additional coverage, while others might lower your premiums. Here are five key insurance considerations before you remodel your home.

Increased Coverage for Home Additions

Expanding your home, whether by adding rooms or finishing a basement, increases its value, and your current dwelling coverage may no longer be sufficient. Before breaking ground, consult an insurance agent to ensure your coverage reflects your home’s value.

Reassess dwelling coverage: New additions increase your value. Review a possible increase of your dwelling coverage to match the new square footage that may be at risk.
Update personal property coverage: Incorporating new rooms or features can include acquiring additional personal belongings. Ensure your policy reflects these changes to protect new furniture, electronics, appliances, and raw square footage.
Review liability coverage: Certain additions can elevate the risk of accidents. Evaluating and possibly increasing your liability coverage is prudent to safeguard against potential claims.

Liability Protection for a Swimming Pool

Adding a swimming pool increases liability risks, as it’s considered an “attractive nuisance.” The legal term “attractive nuisance” describes a hazardous condition or object that might lure children or others onto the property, putting them at risk of injury. The property owner may be held responsible for injuries due to the attractive nuisance, especially if they have failed to take reasonable steps to prevent access, for example, by installing a locking fence or gating around a pool.

Your insurer may require higher liability coverage, so it is always best to check before you begin remodeling. Additionally, installing safety features may be necessary for coverage eligibility—something to consider adding to your remodeling plans.

Policy Updates for a Home Office

If you add a dedicated home office or run a business from home, your standard policy may not cover business-related equipment or liability. To make sure you have adequate protection, consider the following:

Adding an endorsement: This is an addition to your existing policy that modifies or extends coverage. It can protect specific assets or risks not covered by your standard policy, such as business property or valuable items.
Acquiring an in-home business policy: Designed for those running a business from home, this policy covers business property, liability, and other risks that might not be covered under your homeowner’s policy.
Purchasing separate business insurance: Separate business insurance provides comprehensive coverage for business activities, such as liability, property damage, and workers’ compensation. It’s ideal for businesses needing more protection than an in-home policy offers.

Discounts for Safety Upgrades

Not all renovations increase premiums. Updating electrical wiring, plumbing, or roofing can lower costs by reducing the risk of fire or water damage. If your remodel includes these upgrades, ask about potential discounts on your homeowner’s insurance.

Insurance Coverage During Construction

One thing many families or homeowners overlook is the time during construction. Depending on the scale of your remodel, your home may be vacant or exposed to greater risks while construction is ongoing. Builders’ risk insurance protects materials from theft or damage, while vacant home insurance covers unoccupied properties during renovations. Make sure you have the right coverage before work begins.

Stay Protected Through Your Remodel

A home renovation is a significant investment; the right insurance coverage protects that investment. Before starting any project, speak with one of our experienced personal insurance agents to review your policy and make any necessary adjustments today.

National Car Care Month 2025: A Roundup of Our Best Tips

We are there for your car when it comes to auto insurance, but what about everything else? Your car can take you near and far, but only if you take care of it in return. April is National Car Care Month, and it’s your opportunity to show your ride the love that it deserves. Lucky […]

Home Siding: Pros and Cons of 5 Popular Types

Switching up your home’s exterior siding is a bold statement… and a big decision. When starting your research, a few factors to consider are curb appeal, maintenance, weather conditions, durability and – of course – your budget. Here’s the good news: According to Remodeling Magazine, homeowners recoup 80% of the cost of new siding when […]

Archives: April 2025