Does Less Coverage + Big Fees = A Good Buy?
 

Many insurers offer big discounts if you will forfeit the "Standard and Usual" general liability policy; and/or accept a "Prior Work," "Sunset Clause" and/or "Manifestation Provision" endorsement.

According to ACA Insurance Specialists, a contractor who takes a naive approach to their coverage needs and seeks the "Lowest Price" is more susceptible to Big Fees and Less Coverage.


In fact, The ACA has verified that it is more profitable for certain insurance salespeople to sell a "restrictive policy" because in addition to receiving as much as double the commission, it allows for bigger fees due to lower premiums.


Paying higher commissions represents a worthy expense, for certain insurers, because their restrictive liability coverage's reduce their exposure to covered claims to a fraction of what a standard and usual full occurrence policy may cover.


From the perspective of maintaining cost effective general liability insurance over many years, a potential subsequent insurance company may decline to quote or stipulate that vital coverage's not be offered if the prior policy coverage or insurer is inferior.


It is in your best interest to know why certain insurers will pay higher commissions and also provide big discounts in premium if you restrict or remove certain coverage's and the effect it may have on future general liability premiums and coverage's.
 

Sincerely,

 The ACA Team

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