Business Insurance

The Benefits of a 3-Year Policy

business-ownerThe knowledge each of your business clients have of insurance costs and premium calculations falls along a spectrum from unsophisticated to savvy. For most, it’s a budgeted line item required for risk mitigation, but the inability to predict rate changes makes it difficult to project. If that line item is uncertain year over year, it adds a layer of financial stress, when insurance should be offering peace of mind.

Hence, for some commercial lines of business, Cincinnati Insurance offers a unique 3-year policy. This gives business clients stabilization and budgetary control over the insurance line item. While the premium may increase or decrease with changes to their existing exposures such as increasing sales or revised building valuations, the rate itself won’t change for their property, general liability, crime and inland marine insurance.

The stability of this policy allows independent agents representing Cincinnati to spend more time understanding their clients’ businesses and less time processing renewals. You can feel secure in the relationship, and strengthen it, as you meet annually to discuss changes in exposure and how those might impact the premium. This 3-year rate commitment is available for many business clients, regardless of size.

Imagine the benefit of not requiring an annual, lengthy renewal process. There is no annual underwriting, binding or application processing – just the changes reported based upon discussions with clients about updates to their business and exposures. Clients enjoy the stability of these rates while Cincinnati’s independent agents protect their book from competitive annual quotes luring business clients elsewhere.

Clients may ask, what could change my rate? During your annual review, you’ll be looking for changes to property values, payroll or sales estimates. Is the scope of the business changing or expanding into new services requiring new classifications? Similarly, a location change could require a new rate. You can explain to your clients that the rate will remain constant for existing exposures during the 3-year term, while any new exposures created by changes in the business could trigger a new rate.

The Cincinnati Insurance Company developed this unique policy because we understand the cost and time involved in client acquisition and the increasing frequency with which insurance is shopped. The ability to bring greater convenience and stability to commercial clients is a win for everyone.

To learn more about how The Cincinnati Insurance Company can support your business clients, visit

Coverages described here are in the most general terms and are subject to actual policy conditions and exclusions. For actual coverage wording, conditions and exclusions, refer to the policy or contact your independent agent. Ratings are under continuous review and subject to changes and/or affirmation. See each rating agency’s website for the latest financial strength ratings. Property and casualty coverages may be provided by The Cincinnati Insurance Company or one of its wholly owned subsidiaries, The Cincinnati Indemnity Company, The Cincinnati Casualty Company or The Cincinnati Specialty Underwriters Insurance Company. Each insurer has sole financial responsibility for its own products. Not all subsidiaries operate in all states. Location: 6200 S. Gilmore Road, Fairfield, OH 45014-5141.

Originally published in Insurance Journal – November 2019

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