By Natalie Winters
When searching for the best insurance coverage for your business, it might seem logical to engage multiple independent insurance agencies to obtain competing quotes. After all, more options should mean better coverage at a better price, right?
Unfortunately, this strategy can backfire, often leading to diluted opportunities, limited coverage options, and even increased costs. Here’s why working with a single, trusted agency is a smarter approach.
Insurance Markets Are Limited
Insurance carriers typically receive only one submission per client. If multiple agencies submit applications for the same business, underwriters may become overwhelmed, reject duplicate submissions, or provide inconsistent quotes due to varying application details. Instead of creating competition, this often leads to confusion and delays.
Weaker Negotiating Power
When a single agency represents you, they can leverage their relationships with insurers to negotiate better terms. However, when multiple agencies are involved, insurers may hesitate to offer their best terms, fearing that their effort will be wasted if the client ultimately chooses a quote from another source.
The Power of Industry-Specific Advocacy in Underwriting
Each agency may present your business differently, leading to inconsistencies in the underwriting process. An agency with specialization in your industry knows how to present your account to an underwriter with details about how you are managing the risks in your industry, resulting in greater underwriting confidence and more favorable terms for you. Another agency may not have the expertise to advocate as effectively on your behalf, resulting in declined coverage or higher premiums.
Reduced Customization and Advocacy
A specialized agency takes the time to understand your unique business needs, risk profile, and long-term goals. This allows them to tailor policies and advocate for the best terms on your behalf. When multiple agencies are involved, no single provider has the full picture, leading to a more generic, less customized approach to coverage.
Potential for Coverage Gaps
When juggling quotes from multiple agencies, you might unknowingly compare policies with different coverage limits, exclusions, and conditions. Without a single advocate guiding you, you could end up choosing a policy that looks cheaper but leaves you exposed to risks you hadn’t anticipated.
Stronger Long-Term Partnership
Building a relationship with a single agency fosters trust and reliability. They get to know your business inside and out, ensuring that your coverage evolves as your needs change. This kind of long-term partnership is invaluable when claims arise, as your agent will already have a deep understanding of your operations and risk history.
The Smarter Approach: Choose One Trusted Partner
Rather than casting a wide net, choose a single, experienced insurance agency that specializes in your industry. A trusted partner will:
- Work strategically to secure the best coverage at competitive rates;
- Advocate for your business with insurers to get tailored solutions;
- Help you navigate claims and policy adjustments efficiently; and
- Provide ongoing risk management support.
Natalie Winters, CISR, CLCS, is the Market Development Manager and a trusted insurance advisor at Johnson Insurance. She focuses on helping self-storage and RV/boat storage owners protect their investments through tailored risk management strategies. Natalie holds a deep understanding of the unique challenges these operations face and is passionate about making insurance approachable, proactive, and aligned with real-world business needs.
With over 30 years of experience in the self-storage industry, Johnson Insurance delivers customized insurance solutions and hands-on service to self-storage and RV/boat storage operators across the country. From property protection to claims advocacy, the company is a go-to partner for clear, confident coverage—backed by a 97% client retention rate.
