No One Has Ever Called Me After a Claim Grateful They Went with the Cheapest Carrier

In over 30 years of working with professional firms, not once.

I understand the impulse. Insurance is one of those line items that can feel easy to trim, especially when premiums are rising and budgets are tight. If the coverage looks similar on paper, why not go with the lower number? It seems like a reasonable business decision.

The problem is that coverage rarely looks the same when you actually need it.

Where the differences show up.

The gaps between policies do not announce themselves at renewal. They show up in the claims process, in how the carrier responds when things get difficult, in policy language that excludes something you assumed was covered, and in limits that turn out to be lower than what the situation actually requires.

By the time those differences become visible, the decision has already been made. That is the part that keeps me up at night on behalf of the firms I work with.

This is not an argument against cost-consciousness.

Choosing the lowest premium is not always the wrong decision. There are situations where a less expensive option genuinely meets a firm's needs. But it should always be a fully informed decision, not just a comparison of two dollar figures.

Before a firm goes with the cheaper option, I think there are questions worth answering. Do you know what you are giving up? Do you know how that carrier handles claims in your specific discipline? Do you know what the policy excludes that a better option would cover? Do you know whether the limits reflect what a claim in your space actually costs today?

If the answer to those questions is yes, and the lower-cost option still makes sense, that is a reasonable call. If the answers are unclear, the savings may not be what they appear.

How we approach it at PCIA.

Every year at renewal, we have this conversation with our clients. Not to push a more expensive option, but to make sure that whatever decision a firm makes, they are making it with a clear picture of what they are actually buying. The goal is always an informed choice, not just a cheaper one.

The cheapest policy feels like savings right up until the moment it does not.

If your firm is heading into a renewal and cost is part of the conversation, I would welcome the chance to talk through what that decision actually involves. Reach out at pciaonline.com or call 800-969-4041.