I have 2 quotes for business insurance. One is based on payroll and one is based on sales. Comparitively, our payroll will increase more than our total sales will. The payroll quote is through an admitted carrier, while the sales quote is through a non-admitted, but A rated carrier. How do I decide which will be the cheaper one at the end of the year?
You have to look at the actual RATE. Any agent worth their salt should be willing to share the RATE with you. Then you extrapolate – what if you hire two more guys? What if your sales double?? You need the rate itself, to project a best (worst? LOL how is it worse if your sales triple??) case scenario.
I would ALSO double check coverages, line by line – especially the "bells and whistles". Likely, you will have more bells and whistles with the admitted carrier.
Make sure your admitted carrier is A rated, also.
Personally If I was your agent I would not give you a quote from a non-admitted carrier ( even though it is "A" rated)
The policy language is limited. The policy may contain a cancellation provision that recognizes an "earned": premium ( of the full annual) in the event the policy is canceled after 1 month. The Audit s can be a hassle. Their is a Tax and fee involved. And…your agent doesn’t have the relationship as he would with the admitted one. Yes the non-admitted would be "cheaper" at the out set….but drive it for a while and the tires will go Flat!
I would as you agent go with the Payroll policy. As you can see I don’t sell price ….I sell me.
I would go with an admitted "A" rated carrier over a non-admitted "A" rated carrier every day.