I’m going to share a secret with you today. One few insurance agents ever mention. And it’s called IRPM.
For Ohio business insurance, IRPM is short for Individual Risk Premium Modification
So, you’re thinking- Yippee Skippee Carrie, What the hell does that mean to me as a business owner?
IRPM can discount your Ohio business insurance premium- meaning you pay less
It means I have the power (oooh, are you getting all tingly inside yet?) to reduce your premium. IRPM is usually applied as a percentage and is typically capped at 25%. Would you like a 25% premium reduction? I don’t know many who wouldn’t……
How it works- pulled from my own experience at Alan Galvez Insurance
Your Ohio business insurance renewal policy crosses my desk. I review it for any changes, which includes premium. All commercial policies are experiencing rate increases right now, especially on the property side (thank YOU Mother Nature for all the crap you’ve dealt us the past few years). If the overall policy looks good (good payment history, no or few claims, how long we’ve insured you, etc.), I ask the underwriter for credit. Maybe it’s 5%, maybe it’s 10%- eventually we reach an agreement and I apply the credit.
If you deserve it, you get a premium reduction on your policy.
It begs repeating- your history with the company is what determines how you’ll be rewarded. So having a longstanding relationship is actually quite beneficial. Low claims and good payment history is also a major plus.
IRPM can also work in reverse- no credit applied to your Ohio business insurance, but more premium added
Let’s say you have 3 business auto claims in two years. You’ve been with the insurance company 20 years, and you just happened to have some pretty bad luck. This happened to one of my clients. I was able to get the policy renewed, but with 20% additional premium tacked onto the auto portion.
The true beauty of IRPM is that it enables agents to have flexibility with business policies. This 20% debit prevented the policy from being flat out cancelled- woohoo! We just apply credits or debits where appropriate.
Situations where IRPM is not available
Yes, unfortunately there are times when IRPM is not an option. A few examples:
- When the policy is already at the minimum premium allowed by the company. All insurance companies have minimum premiums allowed for their policies. One of ours uses $500 as the threshold. So any business policy issued won’t be any less than $500.
- When the company has taken a mandatory rate increase and the credit puts the policy under the increase. Most of the time the underwriter will tell you that if all policies got the rate increase, yours is no different.
- If the underwriter is feeling cranky, you could get a NO- just for the hell of it (underwriters are people too, and may be having a bad day).
I love working with Ohio business insurance because of the amount of flexibility via IRPM. You can be rewarded for the way you run your business. You can also be penalized for the same (not pleasant, but avoids the often worse fate of cancellation).
And when you’re a small business owner (of which I am one), anything that helps keep a little jingle in your pocket is never a bad thing 🙂
A note: when we apply IRPM, we are effectively reducing our income (you pay less premium, we get paid less commission). We’ll do what we can to help you, but please don’t be an asshat when we have this discussion. We gotta eat too.
If you want to talk about Ohio business insurance, please contact me. I’ll be happy to help you out.