Decoding Your Insurance Renewal: Questions Schools Should Ask Their Broker About Rising Costs

When your annual insurance renewal arrives, it can sometimes come with questions about increasing costs across different areas of coverage. My aim here is to outline the important questions you should be asking your broker to clearly understand what’s driving these changes and how to manage them.

Understanding the “Why” Behind the Numbers

There are often several factors at play with these increases, and a good broker should be ready to discuss the following questions with you clearly:

1. What are the primary drivers of this increase across each line of coverage?
   • Don’t settle for a general statement like “the market is just harder.” Ask for specifics. Is it property insurance due to rebuilding costs, or liability coverage due to a rise in lawsuits? Are there national trends affecting your specific policies?
   • For property, inquire about the impact of inflation on materials and labor for construction. Has the replacement value of your buildings been adjusted, and how does that factor into the premium?
   • For auto, ask about the frequency and severity of claims, and the cost of vehicle repairs and replacements.
   • For liability coverages like abuse and molestation or umbrella, discuss the broader legal landscape, including changes in statutes of limitations or the increasing size of legal judgments.
2. How do our school’s recent claims affect this renewal?
   • Your claims history is a significant factor in your school’s insurance pricing. Ask for a summary of any claims filed in the past year and how they’re impacting your current rates.
   • Understand if there were specific incidents that had an outsized effect, and inform your broker of what steps your school has taken to address similar future events.

Exploring Your Options and the Marketplace

Once you understand the reasons for changes, the next crucial step is to explore what can be done. A valuable broker should present a range of options and provide market insight. Try asking these questions:

1. What options do we have to manage these costs?
   • Ask about changes to deductibles – for property, auto, or even specific perils like wind and hail. What are the potential premium savings for different deductible levels?
   • Inquire about risk management strategies that could make your school more appealing to underwriters. This could include safety programs, fleet management technology, or updated background check procedures.
2. What other companies or programs in the marketplace might be a good fit for our school?
3. How does our school compare to others of similar size or type in terms of premiums or coverage?

1. Are there any changes in our school’s operations or facilities that we need to share for next year?
2. What steps can our school take throughout the year to improve our risk profile for future renewals?
   • Discuss ongoing risk management practices that demonstrate your school’s commitment to safety and loss prevention. This could involve regular property maintenance schedules, robust driver safety initiatives, or continuous training on abuse prevention.
   • A good broker can offer guidance and resources in these areas.

Your annual insurance renewal is a significant moment for your school’s operations. By asking these questions, you empower yourself to understand the details, explore possibilities, and work with your broker to secure the best insurance program for your school’s unique needs.

Looking to shop for new insurance? Read this article on 3 steps that make insurance shopping easier, or learn more about renewals with this video from Kyle Butler.