Should I move my general liability, workers comp, and other policies too?
Short answer: it usually does not matter.
This guide is in the context of small business/small medium enterprises (SMB/SMEs), specifically professional services firms such as Managed Service Providers (MSPs), law firms, wealth managers, etc. The insurance industry defines SMEs as companies under <$100mm/year in revenue.
Every business should carry a general liability (GL) policy to cover property damage and bodily injury, and almost every state requires workers compensation (WC) coverage. These claims are very rare for professional services firms, but are usually large and can involve substantial litigation and cost.
When you are considering working with a new agency for your professional liability (Tech Errors & Omissions/Tech E&O, Lawyer’s Professional Liability, etc. - we will refer to all of these as PL in this article) many firms ask if they should move their entire insurance stack to the new agency.
PL is the most complex and expensive policy for most professional services firms, and the main driver for finding a new agent. The policies vary widely in cost and coverage, and have many quirks that require an industry expert. On the other hand, GL and WC policies are extremely standardized both in pricing and coverage. If there have been claims, or you are located in a particularly risky area (ex: within a few miles of the coast in CA or FL) then you may have additional challenges but those are not specific to your industry.
So with all that information, when working on professional liability clients or a cyber policy, Beltex does not ask to handle all the policies (but we will!) The reason being:
Most agents are going to the same 10 different carriers, there are very few unique options for GL and WC. Your current agent likely has good enough pricing for you, the $10/year savings might not be worth it because…
More paperwork. Anytime you change carriers, there is more paperwork - applications, supporting evidence, loss runs, the list goes on. For SMEs, many GL policies will renew with a simple signature and payment. WC is a bit different due to the payroll audit process, but audits are typically much more simple versus a new quote and policy.
Many GL and WC policies cannot be transferred via “Broker of Record” letters unless you are moving to a giant national agency. So a change would require a new policy.
There is minimal overlap between GL and WC with your PL or cyber policy. The Beltex team will ask for copies to review and advise, but both PL and cyber include substantial or complete exclusions for property damage, bodily injury, and employment related matters.