ABOUT PREFERRED COMMERCIAL INSURANCE
Thank you for your interest in working with Preferred Commercial Insurance Agency. We appreciate the opportunity to earn your business. Please take a moment to review some information about us, our work process, and our agreement to obtain quotes for your commercial insurance needs.
OUR WORK FLOW
We endeavor to obtain several quotes for all of our clients. Once these quotes are obtained, we transparently provide them to each carrier, offering our carriers the opportunity to bid the lowest price to win your business.
Many of our customers have questions about their down payments. The industry average for the down payment on workers comp insurance is 10% down + taxes (4.5%). However, some carriers may require higher down payments of 15-20% depending upon Experian score. Some customers will make the mistake of deliberately misstating their actual payroll in the hope that this will lower their down payment. Our considerable experience has shown that this is often a costly mistake because it limits the number of markets who will consider your risk. There are simply more markets who are willing to consider companies with higher premium.
If you are considering an integrated workers compensation program (that is a workers compensation program that does your payroll as well), down payments are often substantially lower, such as 5%, and in some cases as low as $0 for some PEO's (Professional Employment Organizations).
WHEN CAN I EXPECT TO RECEIVE MY QUOTE(S)?
ALL quotes are typically released to us from the carriers 5 days before the renewal date. Unfortunately, other than PEO quotes, we will not be able to obtain your quotes any sooner, as it is not within our control. The quoting process can take a long time. Please be patient and trust that we are working for you to obtain your quotes from the carriers.
For PEO quotes, we try to provide these quotes 30 days in advance, as the sign up process takes a little longer.
HOW WE GET PAID
We do not charge broker fees. In rare instances, some of the access points we use to obtain your quotes may do so. If those access points charge a fee, we do not receive any of that revenue.
We do not receive any commission on your deposit unless your deposit is applied to your premium at the end of the year.
We receive an average of 10% commission, as earned, for our services. As earned means as a % of the workers comp premium generated from the payroll for the work that you perform. That is why we want you to have the lowest rates: so you can bid lower, save money to invest in more jobs, and ultimately do more business. That 10% we receive is in exchange for the following services:
1. Marketing your policy each and every year to make sure that you always have the lowest rates.
2. Collecting detailed information for carriers in order to ensure that you are properly insured.
3. Certificates of insurance will be issued to you within 24 hours of when they are requested.
4. Assistance with customer service such as billing, filing a claim, waivers of subrogation, etc.
Your rates are determined by a number of factors:
1. Your experience modification number(ex-mod), which is generated by WCIRB and utilized by all carriers. Your ex mod is meant to be a reflection of your loss to premium ratio. However, it is often delayed by one or more years, and may not be indicative of your most recent year's loss history.
2. The nature of your business and the risks associated with it.
3. Your loss history. Any losses within the past 5 years can adversely affect not only your rates, but also your ability to obtain quotes.
4. Your payroll size. Typically, the more payroll you have, the lower the rates.
5. Combining your General Liability with your Worker’s Comp through the same carrier will often provide the lowest rates possible.
6. Many times, the willingness to entertain an integrated option, where the insurance carrier will provide payroll services, will provide the option of lowest rates. This is especially true if you have an adverse loss history or high ex-mod.
7. LAST LOOK: We are fortunate enough to work with several carriers that are actively writing new business and are eager to compete in the market place. If you have an existing quote that beats their best attempt, they are committed to giving their quote one last look in an effort to beat it. They do require a physical copy of the competing quote to perform a last look.
QUESTIONS OR CONCERNS: