Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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direct business insurance

Many companies can benefit from direct business insurance by getting business insurance coverage directly from the insurance company.

Direct insurance offers possible savings and other benefits as compared to conventional insurance policies.

Enter your zip code above to compare free business insurance quotes from all the top insurance companies!

What is Direct Business Insurance?

Insurance is normally offered through agents who work basically as “middlemen” between the insurance provider and the customer. The insurance agent often acts independently and must make commissions from the insurance sold on behalf of the company that provides the actual coverage.

As agents have their own self-interest to think about, the customer may suffer as a result. For example, the agent may not offer all the possible insurance discounts available for a certain policy in order to maximize potential commissions.

Direct business insurance comes directly from the company that provides coverage to the consumer. Basically, by purchasing direct insurance, the consumer is cutting out the “middleman.”

Of course, there can be some advantages to using agents since they will have knowledge of the various types of coverage and insurance plans available. Finding direct business insurance may take some extra research and work on the part of the consumer.

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Finding Direct Business Insurance Online

The easiest way to look for direct business insurance is through the Internet. Many websites offer insurance quote comparison tools that allow consumers to retrieve highly-focused search results. Alternatively, you can search for direct insurance companies straight from the search engines, but this can be time-consuming and cumbersome. The insurance comparison sites allow you to fill out an online form that is used to retrieve highly targeted results based on the details that you provide.

Normally, comparison websites will retrieve local business results, so you will be able to visit the actual business location if you desire. However, you can also do business entirely online with companies that may or may not be in your local area. Sometimes online offers can provide better prices as compared to restricting yourself to offline local companies.

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Can all Companies Obtain Direct Business Insurance?

Generally all companies can do business directly with the insurance companies. In fact, for some companies, it may be necessary to work directly with the provider, for example, very large companies or those with highly-complex risk profiles like petrochemical companies or marine transport companies.

You can many times find lower premiums when working directly with provider, due to cutting out the commission of the agent that the insurance company would have to pay him/her . However, in order to achieve such savings, you will need to shop and compare energetically.

The number of insurance companies is very large and they can differ quite significantly in their financial strength and customer service.

How to Compare Direct Business Insurance Offers

When considering the various quotes that you will find on insurance comparison websites, you will need to consider the financial strength and trustworthiness of the insurance provider. There are five major companies that provide financial strength ratings for insurance firms:

A. M. Best 


Standard and Poor’s
Moody’s
• Wiess Research
• Duff & Phelps

A company with a high financial strength rating is more likely to be in good shape in case you need to make a claim. This can be particularly important in the event of a disaster when many customers may be making simultaneous claims.

Another type of rating is based on customer experience with a company. For example, some insurance comparison websites may offer their own ratings and reviews and/or those published by site users. The ratings may include things like claims experience, purchase experience, pricing, policy offerings, billing and payment, responsiveness and overall satisfaction.

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Policy details

In addition to comparing the insurance companies, you will also benefit by closely studying different policy offerings. The price of the policy is just one important factor that should be used in deciding on the right policy. Other important factors include:

• Deductibles – The amount that you will pay before you can receive claim money. Higher deductibles mean lower premiums. However, make sure that the deductible is not so high that you will be unable to pay it in case of a claim.
• Coverage – The policy will specific exactly what is protected by your insurance policy. A cheaper policy might not be such a good deal if it does not provide the coverage you need.
• Coverage limitations – The maximum amount the insurance company will pay in case of a claim.
• Coverage exceptions – These are instances in which the company will not pay even though you may think you have coverage. For example, your coverage may not apply in cases in which your business has committed serious negligence in performing its services.

Negotiating for lower prices

When dealing directly with insurance companies, you may be able to bargain for a better deal although this is usually easier when dealing with agents. The insurance agents can often cut their own commission in order to give you a better price. However, when you are working directly with the providers, there is no agent to deal with and, therefore, it can be harder to get them to lower their prices.

However, you can let the companies you are looking at know about the lowest prices that you have found to see if they are willing to match that price. Remember that in order to benefit from direct business insurance, you will have to work harder on your own to find the best deals.

Save time and money by letting us compare insurance quotes for you. Simply enter your zip code below!