One Wholesaler Over Another???

[insurance1822]

Do you guys think it's worth having relationships with multiple wholesalers? We only work with 1 and we're trying to place a start-up bar with 375k projected gross sales...70% of which is alcohol. We're looking at $7,400 for GL & LL alone...you think it's worth checking with other wholesalers?

 

[Milkman1265]

I work with 5, but they have different markets and over lapping markets.

In the beginning, i would shotgun the applications, they dont like that... They can see the market block and ask if insured is shopping around.



Best to figure out which wholesale specializes in what and what kind of contract they have with carrier. Then send to which wholesaler depending on type of risk.

I say doesn't hurt to have multiple relationship but i can tell you i send 80% of my business to one, and 20% to the others. I send them a few so they dont forget who i am, but dont expect any special treatment because you dont send enough apps to them.

And yes, they may have other markets or a special relationship with carrier on a program.

 

[insurance1822]

I work with 5, but they have different markets and over lapping markets.

In the beginning, i would shotgun the applications, they dont like that... They can see the market block and ask if insured is shopping around.



Best to figure out which wholesale specializes in what and what kind of contract they have with carrier. Then send to which wholesaler depending on type of risk.

I say doesn't hurt to have multiple relationship but i can tell you i send 80% of my business to one, and 20% to the others. I send them a few so they dont forget who i am, but dont expect any special treatment because you dont send enough apps to them.

And yes, they may have other markets or a special relationship with carrier on a program.

Thanks for the input! Also..when u get the quotes through E&S and you see the company specific endorsements...is there any negotiating to remove some of the restrictive ones? Is it commonplace (if you ask) for them to send you copies of carrier specific endorsements?

 

[Soaringagent]

I've seen some like 10K water damage deductible. Is this normal? and can it removed?

 

[Milkman1265]

Thanks for the input! Also..when u get the quotes through E&S and you see the company specific endorsements...is there any negotiating to remove some of the restrictive ones? Is it commonplace (if you ask) for them to send you copies of carrier specific endorsements?

I used a E&S Wholesaler, and i knew the underwriter personally through a mutual friend. They always sent me carrier iso forms and endorsement stuff, when you ask.

But i don't know how your state/area is, over here you only get what you ask for, so they dont put any specific endorsement on, but if they do for example liquor liability for a restaurant with a bar. I have to get a signed statement saying it was their own decision even when i advise not to. I put it on the acord application that they request it off. I put it on my total cost bill.

I pretty much put it everywhere and highlight it. They will take it off.

 

[InsuranceRenegade]

We're an e&s shop and its a nightmare when agents shop to 5. One of our agents lost a huge account because he got declined by one i our main carriers from another e&s shop. We have a huge book with the carrier and knew how to get the carrier to say yes but once declined.


As to bars. We use 8 carriers all depending on region.

 

[whatsa]

In my experience, you should always have 2 or 3 brokers that you can go to for an account, depending on which type of account you are shopping.

HOWEVER, as someone mentioned earlier in this thread, it is not smart to shop to more than one broker when you go out to the market, as you run the chance that they will trip over each other and neither will be able to get the deal done. As a wholesale broker, I've been through it more than once, where relatively simple, but large deals got convoluted when there were more than one broker out in the market.

Do your homework, and make sure that you know EXACTLY what are the strengths and weaknesses of your wholesalers (if you are dealing with a 'sensible' shop, they should be able to tell you not only what they do well, but also where they are not as good as their competitors).

Once you have done your homework, you should be in a position to improve the odds in your favor by simply sending the business to whichever broker is best for that particular type of business.

 

[Milkman1265]

i started getting BOR forms signed in case they get market blocked and you can submit it to let your wholesaler get the quote.

BUT DO NOT send this to everyone.

I use it only when i have overlapping market and i do not know who has better rate (when their both competitive, and i am competing on price). I usually tell the wholesaler, i already submitted to X carrier so dont send it to them and quote others.

Sometimes they forget or you forget and they end up blocking out each other. Then you can submit it once to get the quote from your preferred broker.

 

[Matt37]

Certainly good to have multiple wholesalers as some specialize in certain niches.

But I also agree it is not good to have them all sending it to same markets.

Although I did have an instance where and I wont say any names but a wholesaler had it in the best market but was just not getting back to me and not pushing the underwriters and insured was about to bail.. I signed over a BOR to a different wholesaler they pulled the quote and we bound same day.

I felt bad but I was going to lose it because underwriters took half the week off.

 

[DJAJ]

So are wholesalers the same as surplus lines brokers? Do they deal mainly with Non admitted carriers? Can we freely use these services?