Avoid Being Blocked from Better Insurance Quotes: What Every Business Owner Should Know
When it comes to shopping for business insurance, many owners think that asking multiple agents to seek quotes will give them the best options. However, this well-meaning strategy can sometimes backfire — and actually limit your access to the most competitive proposals. The culprit? A little-known process called market blocking.
What Is Market Blocking?
In commercial insurance, once an agent submits your account to an insurance company (also known as a market), that company typically responds only to the first submission it receives. This means other agents — even those who may better understand your business or represent it more effectively — are shut out.
Unfortunately, some agencies exploit this system. Their goal isn’t always to find you the best coverage, but rather to eliminate competition by submitting your account to as many carriers as possible, as fast as possible. This tactic can result in you being “blocked” from working with insurers that might have offered stronger coverage or pricing.
How Market Blocking Can Harm Your Business
This behind-the-scenes practice can leave business owners at a disadvantage. Here’s what can happen:
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Markets get flooded. The agent submits your account to as many carriers as possible — even those unlikely to provide a quote — simply to block other agents.
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Lack of transparency. You’re often not told which insurance companies were contacted or whether they were realistic options for your needs.
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Limited choice. The agent may present just one quote — often the one easiest for them to secure or the one offering the highest commission, not necessarily the best fit for your business.
The result? You’re left with fewer options, less visibility into the process, and uncertainty about whether you’re truly getting the best value for your insurance dollar.
How to Protect Yourself
The good news is, with a bit of planning, you can avoid these pitfalls. When working with agents, be proactive and ask for:
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A list of insurance companies they plan to contact on your behalf.
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A list of markets already approached by any other agents.
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A clear agreement on which agents are assigned to which insurance companies.
By coordinating the quoting process from the start, you promote fairness, transparency, and true competition among agents — and improve your chances of receiving the most competitive and accurate proposals.
Why Underwriters Care
Insurance underwriters don’t like to see multiple, inconsistent submissions for the same account. It raises questions about the accuracy of the information provided — and about the risk itself. In some cases, this confusion can result in your account being declined, or priced higher to offset uncertainty. Most often, the underwriter will focus only on the first submission they received, no matter which agent might ultimately be the better representative for your business.
The Bottom Line
By understanding how market blocking works and taking steps to coordinate your insurance shopping process, you can avoid being trapped in a situation that benefits the agent more than it benefits you. The goal should always be securing the best coverage, pricing, and service for your business — and that starts with clarity and collaboration.
If you’d like to review how your account is currently being handled or discuss this topic in more detail, feel free to call me at 713-205-0525. I’m happy to help.
