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Benefits of Bundling Business Insurance Policies
Similar to bundling your home and auto insurance policies, there is a benefit to bundling business insurance policies as well. These benefits extend further than just better carrier rates. This article discusses all of the advantages to bundling business insurance policies.

Home » Business Insurance » Benefits of Bundling Business Insurance Policies

Benefits of Bundling Business Insurance Policies

Similar to bundling your home and auto insurance policies, there is a benefit to bundling business insurance policies as well. These benefits extend further than just better carrier rates. This article discusses all of the advantages to bundling business insurance policies.
Insurance carriers realize that offering additional lines of coverage to an existing customer is less expensive than trying to attract new customers. They also know that the more lines a given customer has, the longer they will likely stay with them.

While bundling business policies benefits insurance carriers, it is also highly valuable to their customers. Similar to how bundling your home and auto policies may give you a discount, bundling business policies can provide benefits way beyond cost savings.

 

Simplified Bookkeeping

Most businesses require several insurance policies to adequately insure their operations, including:

 

  • Workers’ compensation
  • General liability
  • Commercial property
  • Professional liability
  • Commercial auto
  • Business interruption
  • Cyber liability
  • Directors and officers

 

Keeping up with that many policies isn’t an easy task for business owners. Therefore, bundling multiple policies with the same carrier simplifies things for bookkeeping purposes. Besides having fewer bills to keep track of every month, it also makes it easier come renewal time if the bundled policies renew simultaneously each year.

Your HR department will also appreciate having one number to call when hiring a new employee, having claims questions, adding a location, or making other business decisions that impact your insurance.

 

Fewer Agents to Educate

Properly insuring your business requires explaining to your insurance agent exactly what your company does and the exposures that come with it. But without bundling your policies, you have more agents to educate, which takes time. The fewer agents you work with, the better equipped they’ll be to help identify and address your exposures.

 

Assurance That Your Policies Work Together

There may be circumstances when two business insurance policies must work together. For example, you may assume that your commercial umbrella policy would cover something not covered by your commercial auto policy. However, many umbrella policies will only extend above an auto policy if the insurance company offering it has a specified financial strength rating. If your carrier’s rating falls below a certain grade, your umbrella policy may not cover an auto loss. That’s one problem if you keep your policies under separate roofs with separate agents.

 

Less Security Risk

When obtaining insurance, business owners must divulge sensitive personal information about their employees and financial information about the business itself. When dividing your policies among multiple agents, you’re providing all that information to more people than you would have if you’d bundled your policies with one agent. And in doing so, you’re increasing the risk of highly sensitive information ending up in the wrong hands.

Insurance carriers realize that offering additional lines of coverage to an existing customer is less expensive than trying to attract new customers. They also know that the more lines a given customer has, the longer they will likely stay with them.

While bundling business policies benefits insurance carriers, it is also highly valuable to their customers. Similar to how bundling your home and auto policies may give you a discount, bundling business policies can provide benefits way beyond cost savings.

 

Simplified Bookkeeping

Most businesses require several insurance policies to adequately insure their operations, including:

 

  • Workers’ compensation
  • General liability
  • Commercial property
  • Professional liability
  • Commercial auto
  • Business interruption
  • Cyber liability
  • Directors and officers

 

Keeping up with that many policies isn’t an easy task for business owners. Therefore, bundling multiple policies with the same carrier simplifies things for bookkeeping purposes. Besides having fewer bills to keep track of every month, it also makes it easier come renewal time if the bundled policies renew simultaneously each year.

Your HR department will also appreciate having one number to call when hiring a new employee, having claims questions, adding a location, or making other business decisions that impact your insurance.

 

Fewer Agents to Educate

Properly insuring your business requires explaining to your insurance agent exactly what your company does and the exposures that come with it. But without bundling your policies, you have more agents to educate, which takes time. The fewer agents you work with, the better equipped they’ll be to help identify and address your exposures.

 

Assurance That Your Policies Work Together

There may be circumstances when two business insurance policies must work together. For example, you may assume that your commercial umbrella policy would cover something not covered by your commercial auto policy. However, many umbrella policies will only extend above an auto policy if the insurance company offering it has a specified financial strength rating. If your carrier’s rating falls below a certain grade, your umbrella policy may not cover an auto loss. That’s one problem if you keep your policies under separate roofs with separate agents.

 

Less Security Risk

When obtaining insurance, business owners must divulge sensitive personal information about their employees and financial information about the business itself. When dividing your policies among multiple agents, you’re providing all that information to more people than you would have if you’d bundled your policies with one agent. And in doing so, you’re increasing the risk of highly sensitive information ending up in the wrong hands.

The Last Word

Bundling business insurance policies allow your insurance professional to give you access to multiline discounts that help boost your bottom line. Contact an InsureGood Advisor to see if any of your insurers offer multi-line discounts. We can give you estimates for bundling business policies with each carrier.

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