Overview
When competing commercial insurance proposals arrive, the temptation is to look at the bottom line and pick the cheaper one. But premium is only one column in the comparison. Limits, deductibles, valuation methods, endorsements, and exclusions commonly differ between proposals in ways that matter far more than a few hundred dollars of premium.
This guide covers the elements worth comparing line by line, and includes a printable worksheet you can fill in as you review each proposal.
Compare the structure before the price
First confirm the proposals cover the same things: the same coverage lines, the same locations, the same vehicles and equipment, and the same named insureds. A cheaper proposal that quietly omits a coverage line or a location is not cheaper — it is smaller.
- Coverage lines included in each proposal
- Named insureds and any subsidiaries or DBAs
- Locations, vehicles, and equipment scheduled
- Policy form: claims-made or occurrence, and any retroactive date
Line up limits and deductibles
- General liability per-occurrence and aggregate limits
- Umbrella or excess limits and which policies they sit over
- Property limits, valuation method (replacement cost vs. actual cash value), and coinsurance
- Business-income limits and the period of restoration
- Deductibles by line — including any separate wind/hail or percentage deductibles
- Cyber and EPLI limits and retentions, if included
Read the endorsements and exclusions
Endorsements and exclusions are where otherwise-identical proposals diverge. One carrier's form may include blanket additional-insured wording your contracts require; another may exclude a key operation entirely. Ask each proposing agent to identify the major endorsements and exclusions, and compare them directly.
Use the printable comparison worksheet
To make the comparison concrete, print the proposal comparison worksheet and fill in one column per proposal. It covers carrier, premium, deductibles, key limits, valuation method, coinsurance, major endorsements and exclusions, and policy form — the fields that most commonly decide which proposal actually protects the business better.
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Frequently asked questions
Is the cheapest proposal ever the right choice?
Sometimes — when the coverage is genuinely equivalent. The point of a structured comparison is to confirm equivalence before price decides. If two proposals really do match on limits, forms, endorsements, and exclusions, price is a fair tiebreaker.
What is the difference between claims-made and occurrence forms?
An occurrence policy covers incidents that happen during the policy period, whenever the claim is filed. A claims-made policy covers claims made during the policy period, usually subject to a retroactive date. Switching between them without care can create gaps.
Should carrier financial strength matter in the comparison?
Yes. A policy is a promise to pay claims, so the carrier's financial strength rating and its reputation for claim handling are commonly worth weighing alongside the terms themselves.