Why you need to carefully read your insurance quote

Yesterday I got a call from a current client asking me why my quote to renew his liability policy was $400 more than a quote he got from another broker for the same insurance company. I asked him to fax me the quote for review. While the insurance parent company was the same, the coverage was not comparable at all. The "cheaper" quote stripped out some important coverages (it did not cover any water damage, no overspray coverage, no contractual liability, and defense costs would be paid out of the limits of insurance instead of the insurance company coffers). The other broker made no attempt to explain the difference.

The point is you must carefully read any insurance proposal to see if it fits your needs. Cheaper policies almost always have something vital missing.