Author: Alex Cossio
Whether you’re a brand new operator or a seasoned veteran, one of the most common headaches you’ll deal with is finding insurance for your business.
As a former insurance agent (and current insurance wholesale broker), I can tell you that there are some things you can do to improve your buying process and give you more control of the outcome. Let’s dive in below:
- Choose an agent that specializes in amusement insurance. Seemingly everyone has a cousin or a family friend with a local insurance agency, however, they might specialize in personal lines or “traditional” business insurance like construction, landscaping, etc. While some of the basics translate over to our industry, 9 times out of 10 they will not have the requisite understanding of the market for amusement device rentals. If you have to explain to your agent the difference between a combo unit and a regular bounce house, that’s probably a sign that you should look for someone else.
- When you engage with a new agent, ask him/her where they will market your account. Some agencies have contracts with carriers or wholesale brokers (like myself) that are not available to everyone. If you think you can move agencies and have the same access to markets, it may not be the case. The insurance industry works on a “first in” basis, so you can be blocked by another agent if they get to that market first.
- Make sure your agent can provide timely service. I don’t know how many additional insured requests I have processed after 5 pm on a Friday before a major holiday. If your agent shuts down the office early on Fridays to go play golf, that might be a major problem for you.
- Know your numbers. If you go into the application process not knowing what your total revenue is (or the breakdown of where the revenue comes from), you are putting yourself at a disadvantage. Some carriers will provide a composite rate vs. a rate per class, so if you can verify that the majority of your sales come from tables/chairs instead of inflatables – that can massively impact your premium. Having rental software from Inflatable Office (IO), Event Rental Systems (ERS), or Bouncy Castle Network (BCN) makes you eligible for a 5% discount with a carrier like Hudson, for example. All of these software providers have built custom reports for this purpose, you just need to provide them to your agent on a rolling 12 months basis (not the calendar year).
- Get your loss history for the last 5 years (every year). For this cycle, that means from 2021-2026, you need CURRENTLY VALUED loss runs, which means the reports must be generated within 60 days of your expiration date. Even if you are no longer with the agent you had back in 2022, you still have to go back to them and request those updated reports. This process may take a couple weeks so don’t wait until the last minute.
- Don’t let your policies lapse due to non-payment of premium. Now more than ever, your payment history is a major factor on non-renewals & cancellations. If you have demonstrated a pattern that every single premium installment is late, you will find that the market for your business is limited. You might have to pay the entire premium upfront (or only have limited payment options) due to the number of notices of cancellation you have received on the prior term.