Why You Should Bundle Your Insurance
If you’ve been researching commercial insurance for some time, you may have come across the term “insurance bundle” or “insurance bundling.” The most straightforward definition of insurance bundling is when you get multiple insurance products from the same provider or insurance carrier.
The main advantage insurance bundles offer is they usually have a discounted price. However, this isn’t the only advantage of insurance bundling.
What Is Insurance Bundling?
There are various types of insurance plans available. For construction businesses and related trades and professions, a few of the main kinds of insurance that are bought by business owners include the following:
- Commercial general liability (CGL) insurance
- Professional liability insurance
- Commercial property insurance
- Builder’s risk insurance
- Commercial auto insurance or fleet insurance
- Construction equipment insurance
- Installation and tool floater insurance
- Worker’s compensation insurance
- Pollution liability insurance
Depending on your business or professional practice, you can attain the full coverage you need by having two or more policies. You can buy the insurance plans separately or get them as a bundle.
As we mentioned earlier, insurance bundling means that you get multiple insurance policies from one insurance provider. An insurance bundle can be simple and generic, such as what’s known as a “business owner’s policy.” This is a type of insurance bundle that combines commercial general liability insurance and commercial property insurance.
However, in some cases, you can opt for an insurance bundle that is tailor-fit for your business, as we will discuss in a later section.
What Are the Benefits of Bundling Your Business Insurance?
1. Get More Coverage For a Lower Price
The price of an insurance bundle is typically lower than how much you will spend if you will get the policies separately. The discount could be around 5% to 25%. Such a discount could build up into significant savings in the long run.
Though the discounted rate is the main advantage that insurance bundles offer, it’s just the tip of the iceberg. As you will see in the next sections, insurance bundling makes life a lot easier.
2. Have One Contact Point for Questions and Insurance Updates
When it comes to business insurance, your relationship with your insurance carrier or insurance provider doesn’t end the moment your insurance is activated.
As we’ve discussed in our article, “When Should You Update Your Business Insurance Policy?,” any major changes to your business would need to be communicated to your insurance provider as soon as possible. Failing to do so could affect your coverage. Aside from updates to your business insurance, you may also have questions.
Consider this scenario: your business is expanding its main office, buying new equipment, and replacing old service vehicles, and you are wondering how this will affect your premiums.
If you had different providers for your property insurance, fleet insurance, and construction equipment insurance, you would need to correspond with three different insurance providers.
You would also need to document each and every correspondence and keep tabs on updates from their ends. If you happen to have chosen an insurance provider with subpar customer service, you may end up trying to reach them through different channels before getting a response.
With insurance bundling, you only correspond with one insurance provider for all your business updates. If you choose an insurance broker with superior customer service, like Contractors Insurance, there will always be someone ready to help you. All your updates and questions are settled in one easy sweep.
3. Manage Payments More Easily
Being able to manage premium payments more easily is another advantage of getting a commercial insurance bundle. This ties back to having one contact point because in the realm of business insurance, the fewer moving parts there are, the more seamless the experience is.
Furthermore, if you get your insurance plans from different providers, you will likely have different premium deadlines that you need to keep tabs on. This opens you up to incidents of forgotten premium payments which, depending on the timing, can have catastrophic repercussions.
Last but not least, in case of delayed payments for insurance plans from different providers, you will need to keep track of different grace periods.
4. Easily Understand Your Insurance Documents
In our article, “How to Read and Understand Your Insurance Policy”, we talked about the main parts that insurance documents have. If you’re new to business insurance, that is a handy resource for you to check out!
We talked about how insurance policies typically have the same parts and the same jargon. However, this doesn’t mean that insurance documents are all the same.
For example, if you have ever had the experience of changing insurance providers for your home insurance, you may find that one document is more organized and detailed than the other. This kind of difference can also occur in commercial insurance plans coming from different insurance providers.
Therefore, by finding one insurance provider who will give you organized and detailed insurance documents for your insurance bundle, the process of getting to know your insurance policies is a whole lot easier.
How To Get An Insurance Bundle For Your Business
One must not judge an insurance plan by its name. There are insurance providers out there who will offer “plumber’s insurance” or “engineer’s insurance,” making it seem that these are insurance bundles fit for the mentioned industries. Typically, these are not insurance bundles but just another industry-specific way to package CGL insurance (for plumbers) or professional liability insurance (for engineers).
Though CGL and professional liability insurance are important, these are usually just a part of a comprehensive insurance bundle. The best way to get an insurance bundle that fits your business is to find an insurance provider that you can rely on.
A Personalized Commercial Insurance Bundle For You
Contractors Insurance is an award-winning insurance brokerage firm that’s trusted by numerous contractors, tradespeople, and professionals. We specialize in putting together personalized insurance bundles that target the specific needs of a business or professional practice.
Furthermore, we are known for our utmost transparency and end-to-end service. From negotiating premiums to following up on claims, we’ll be there for you.
Whether you’re looking for insurance bundling or a specific kind of insurance plan, we’ve got you covered! If you would like to learn more or if you have questions for us, please feel free to reach out to our team.