The Renewal Trap
Ever notice how your insurance renewal shows up just a few days before it’s about to expire? Like, just enough time to throw you into panic mode? That’s no accident! It’s often a sneaky little strategy used by some brokers and carriers. They might even try to blame you, saying, "Oh, we didn’t get your updated info in time!" even though you met with them months ago. Let’s dive into why this happens:
Even if you sat down with your broker 90 days ahead, they’ll sometimes drag their feet on sending the final renewal. Why? Because the less time you have, the more likely you are to just stick with their offer. After all, who wants to risk letting their insurance lapse? It’s like getting homework the night before it’s due—you're stuck with what you’ve got.
They know if you had more time, you’d probably shop around for better deals. And who wants that? By delivering the renewal at the last minute, they’re making sure you don’t have time to collect competing bids or research new brokers. Especially with complex commercial policies, getting alternative quotes isn’t something you can do overnight. So, you’re trapped
Some brokers are really in it for the commission. By keeping you in your current policy, they ensure they don’t lose out on that sweet, sweet renewal commission. Offering you a better deal elsewhere? Nah, that’s not part of their game plan—because it could mean a smaller payout for them.
Insurance policies are already tricky, right? And commercial ones are even more complicated. So, brokers know that giving you limited time means you won’t have a chance to comb through every little change in the fine print. Higher deductibles? New exclusions? They’re betting you’ll miss it in the rush. It's like trying to read the terms and conditions of a software update—you know you’re not reading the whole thing.
Imagine you run a manufacturing business. You meet with your broker a solid 90 days before renewal. You talk about how your operations have grown and that you need to review your liability coverage. Your broker smiles, nods, and says, “We’ve got this.” But then, just three days before your policy expires, they finally send over the proposal. By now, you’re scrambling. Is your new coverage enough? Could someone else offer you a better deal? Who knows! You’re out of time, and you’re basically forced to renew on their terms.
The bottom line? These last-minute tactics are no way to treat a client. A good broker—a real advocate—should meet with you early and deliver your proposal with plenty of time to spare.That way, you can actually weigh your options and make smart decisions. So, next time, make sure you’re working with someone who’s more interested in transparency than in trapping you at the 11th hour!