While many insurance agents may seem to provide quotes to customers with minimal information, there is high likelihood they are missing key coverage's. Insurance companies are all different, however the one thing they have in common is they all like good information. As an insurance agent it is my job to ask the questions that my insurance companies want to know. Providing the insurance company with complete and accurate information will help tremendously in getting good pricing and good coverage. Why would you want to pay for a policy that may not have the coverage you need?
Good information equals a good quote. Take for instance a landscape company and a work comp quote. There are different rates for lawn maintenance, landscape gardening and clerical. It is important as a company to break these down by payroll in order to get the best overall pricing and coverage. And for general liability purposes, it's important for the insurance company to know exactly what work you perform. If you are simply doing lawn maintenance that's pretty easy. However, if you install waterfalls, pools, outdoor kitchens, etc, your liability increases. The reason for this is you have more exposure for something going wrong. Now, if you as a business owner subcontracts these bigger jobs out, the insurance company wants to know if your subcontractors have their own insurance. The reason for this is because if they don't have insurance, your general liability would be the one paying in the event of a claim.
Insurance is transferring risk. You as a business owner buy insurance to transfer your risk to an insurance company. The insurance company wants to transfer the risk to your subcontractors insurance if possible. For more information, contact Sean Leigh.