For example, one tire importer was experiencing booming sales without having hired any new personnel. The sales increase resulted from a new sales incentive plan. The company's insurance premium was about to be increased because the carrier based the premium on the company's sales volume. What's more, the rating basis can be changed again should circumstances warrant. There is tremendous flexibility in the areas that determine how a premium is arrived at by the carrier.
Companies also have to examine how they are classified.
The ratings manuals contain industry descriptions, but a company may fit more than one classification code. An insurance expert can assist the company in determining which description best fits the company and carries the least perception of risk. Consultants give diverse and innovative advice on how to best present the company's exposure to obtain optimum coverage while reducing costs. They are insurance equalizers for the client since they are insurance experts who speak the language of insurance carriers, brokers and agents, but do not make a commission on the insurance sold. Another advantage of working with consultants is that they can determine the true need for coverage and seek it from the best specialists.