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Shopping for Commercial General Liability Insurance

Posted by on Sep 28, 2016 in Blog | 0 comments

 Shopping for Commercial General Liability Insurance

Shopping for CGL Coverage (Commercial general Liability) insurance

  • Be proactive. Provide your agent or insurance markets with claims history, coverage choices, and risk management efforts four months in advance.
  • Respond quickly to requests for information from your agent. Be sure to document all communication with your agent. Especially note key items such as policy limits, deductibles, requested effective date, prior acts coverage if applicable, etc.
  • Get your claims history (loss runs) up to date. You may request claims history from your insurer. Businesses of any size should be prepared to address claims history.
  • Update and document all loss control/risk management measures, including training accomplished. Be prepared to show why your business currently is and will continue to be a good risk.
  • Get quotes from several companies. When comparing prices, make sure you’re comparing policies with similar coverage. A less expensive policy might also provide less coverage.
  • Keep shopping if an insurer declines to cover your business. Insurers have different underwriting criteria. If one company turns you down or is too expensive, another may be willing to issue coverage or offer a lower premium.
  • Review your limits of insurance and make any necessary adjustments. For example, if your business is growing you may consider increasing your limits.
  • Consider a higher deductible. Assuming more risk in the form of higher deductibles or lower policy limits may help reduce your premium.
  • Allow for premium increases. When preparing your budget, allow for premium increases or additional premium charges resulting from an audit.
  • Verify your agent’s and insurer’s licenses. Agents and insurers must be licensed to sell commercial property insurance in Texas. An unlicensed insurer may not meet the state’s minimum financial and regulatory requirements, meaning the company may not have the financial resources to pay your claim. To learn an agent’s or insurer’s license status, call TDI’s toll-free Consumer Help Line or use the Agent Lookup or Company Lookup features on our website.