Here are some other things to consider when comparing two or more quotes:
oHow long will each quote be valid? Many quotes are valid only for 30 days, but some do not indicate when the 30-day period begins. Find out the starting date, so you know the deadline for accepting the offer. In a soft market, insurers might honor a quote for 45 days or even 60, but they're not obligated. If you wait too long, you might have to submit a new app.
oThis might seem obvious, but make sure the insured's name, address and description of operations are correct. Listing an incorrect name or location, or omitting a single word in the description of covered activities, such as "consulting," can create a significant coverage gap, especially in professional and cyberspace liability policies.
oNote the policy period. Don't assume all policies are annual.
oObtain and read copies of all forms mentioned in each quote. You can't make a valid comparison from lists of form names alone. Different insurers may use the same name for different coverage features, endorsements, limitations, etc. Rather than assume you understand what is being offered, get copies of the forms and check them. If you do a lot of business with one company, save yourself time by keeping a set of its policy and endorsement forms on file.
oCheck for complete information about all applicable terms and conditions.
oNote whether defense costs are included in liability limits.
oRetroactive dates sometimes appear where you least expect to see them. This is another reason to read the entire quote carefully.
oEnsure that all quotes use the correct class codes and exposures. If there's a classification limitation endorsement, review the classifications carefully.
oIf the premium is a "minimum & deposit," define the term for your client. If a final audit shows the exposures came in less than estimated, the insured may expect a return premium if the provision isn't explained.
oDo any fees apply? If so, are they fully earned? Are taxes payable (if the carrier is nonadmitted)?
oNote any conditions to granting of coverage, such as "subject to receipt and review of service agreement prior to binding" or "subject to satisfactory inspection."
oWhen you place coverage with a nonadmitted insurer, make sure you know the surplus-lines regulations for the state and comply with them.
oWhich version of the commercial general liability form is each carrier using?
oDoes the quote contain an employment practices exclusion? Get a copy of the exclusion and review the definition of "employment practices."
oAre "independent contractors" covered or excluded? In either case, review the definition of the term. It can vary from insurer to insurer.
oPay particular attention to such phrases as "no flat cancellation," "25% fully earned at inception," and "25% minimum earned upon binding."
oBeware of vague statements or requirements. I've seen quotes that said, "We must have written confirmation of acceptance" but didn't indicate who must provide the written confirmation, or to whom or by what date. Clear up any uncertainties.

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