Commercial Insurance FAQ

    1. How long will it take to get a commercial insurance quote?
    2. How are “Admitted” and “Non-Admitted” Carriers different?
    3. What are “Loss Runs” and why do I need them?
    4. Is financing available?
    5. Are we a carrier?
    6. What is the process of getting a quote?
    7. What is an “Additional Insured” and why do I need it?
    8. Can I be audited by my carrier?
    9. What are our hours of operations?
    10. What states do we write business in?

1. How long will it take to get a commercial insurance quote?

Time will vary depending on your operations, the complexity of your business, whether you have had previous coverage, and if you have had any claims. Simple policies can be quoted the same day, more complex policies can take days, even weeks.

2. How are “Admitted” and “Non-Admitted” Carriers different?

An Admitted carrier is “backed” by the California Insurance Guarantee Association (CIGA) Fund. The Fund would cover the claim up to your policy limit or $500,000 in liability; whichever amount is lower, in the case that the carrier becomes insolvent.

A “Non-Admitted” carrier has been approved by the California Department of Insurance to operate on a “Non-Admitted” basis but is not “backed” by the CIGA Fund. Financial stability of the carrier becomes very important when they are transacting business on a “Non-Admitted” basis. This can be investigated by using companies such as A.M. Best who are in business for the sole purpose of researching insurance carriers and compiling statistical information.

One point that should be mentioned is that financial strength is not always related to the carriers Admitted or Non-Admitted status. Furthermore, there are more regulatory restrictions placed on the Admitted carrier. Some of the largest insurance companies in the world choose to transact business in California, and in all states, on a Non-Admitted basis.

3. What are “Loss Runs” and why do I need them?

Loss runs are reports issued by your carrier that show whether or not you have had any claims. These reports must be dated within 90 days of a quote request. Providing Favorable Loss Run history can sometimes get you a discount on your premium, and are required by most carriers.

4. Is financing available?

Yes. You can finance your policy with a minimum down payment of approximately 30-50% of your total cost, depending on the carrier. (Finance charges will apply).

5. Are we an insurance company?

No. We are an independent Brokerage. We work for the YOU, not the carrier.

6. What is the process of getting a quote?

We try to obtain as much information we can from you. From this information, we will be able to determine what carriers will best fit your needs and provide you with the best price. In some cases it will take completing several applications to get you the best quote.

7. What is an “Additional Insured” and why do I need it?

This is an endorsement which names others to your policy. It is a requirement by almost all carriers that if you hire a Sub-Contractor — you must have your Company named as “Additional Insured” on their policy. Failure to comply with this requirement can get you Cancelled or could affect any claim should one arise.

8. Can I be audited by my carrier?

Yes. Your premiums are based on the estimated numbers provided at the begining of your policy. These numbers are usually based on your past history. In order for the carrier to determine that you were charged the correct premium for the amount of your exposure, a carrier will contact you towards the end of your policy, or after it has expired.

9. What are our hours of operations?

Monday – Friday 8:30 am to 5:00 pm.

10. What states do we write business in?

We serve businesses and individuals in California, Arizona, Nevada and Oregon.

Speak with our commercial insurance expert today. Call John Bills directly (408) 600-2071 or e-mail him at John@brauerinsurance.com