There are a few ways to figure out if your general liability insurance is too expensive. This article offers a few commonsense methods to help you figure out your numbers. As you know, if you have made claims in the past, then your insurance should be a little higher, but there is a difference between A little higher and too expensive. Find out here if your insurance is too expensive.
What is the Standard Financial Recommendation?
When you are building your business plan, you find figures online of recommended amounts for things like utilities, maintenance, etc. Take a look at what people are budgeting for insurance. Scale the numbers up or down based on your circumstances and see if the numbers you are paying are a little too high.
What Sort of Quotes Did You Get?
Obviously, if your number is very high and all your other quotes are low, then your insurance is too highly-priced. However, things are rarely that black and white. If you are paying too much, then the quotes you are getting are too high in general. In truth, if most of your quotes seem overly high, then alter your research methods and start looking for different companies so you can get different quotes.
Is There An Additional Factor Involved?
It may be possible that the things you are entering into the quoting systems are what is throwing off the quotes. Speaking to an advisor and getting a more personalized quote is a good idea, but also, do a little research into what you are entering into the quoting tools and how they affect your quote.
Here is a random example that will hopefully shed a little light on the issue. A new high-tech car was released that offered amazing fuel mileage. To save even more money, the driver entered a small number into the “Mile per year” section and only opted for fire/theft/third-party insurance rather than comprehensive. The quotes the driver received were massive.
When the driver entered more honest mileage numbers and opted for full cover, the quotes were almost 60% cheaper. This is because the insurers had plenty of data for people driving many miles with full cover, but very little data for people driving a few miles with partial cover. There was clearly some uneven data collection and/or averaging, which led to weird quote numbers. The moral of the story is that perhaps you learn how each piece of data you enter into the quotation tools will affect your quote price. If you are using automated quotation tools online, then try fiddling with a few numbers and getting quotes again to see if it makes a big difference.
Get In Touch With an Independent Company
Rather than running through the many massive insurers and their huge marketing budgets, get in touch with an independent insurer. They are more likely to offer a quote based on your circumstances rather than national statistics. Get a quote for your general liability insurance from a company like Mona’s Insurance and get a clearer view of what you should be paying for your insurance. If the quote you receive is far lower than what you are paying now, then it is fair to say that your insurance is too expensive.