The relationship between the agent and carrier is what matters, along with industry expertise obviously. That said, the more business an agent places with an insurance company, the more clout/influence (ie more aggressive pricing) that agent may be able to have with a particular carrier, and a larger agency is likely to have that kind of clout with multiple carriers. Not only does this come in to play in placing business, but this relationship can also come in to play in the event of a claim. I would take a smaller industry specialist over a larger more generic agency any day. There are however several large agencies that can legitimately claim to be construction industry experts. Most can be found advertising in Building Profits. In evaluating a smaller agency, back office strength is a significant factor, both with your daily interactions (cert of ins, reviewing contract/bid insurance language for required coverage) and safety program support/loss control and involvement with claims, particularly workers comp cases and setting of reserves. With a large agency that is truly a construction industry specialist, the primary concern for me would be the potential for small fish in big pond treatment, so reference checks are critical.
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John Bieber CCIFP, CPA
Chief Financial Officer
National Glass & Metal Co., Inc.
Horsham PA
(267) 532-1780
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