Common Mistakes Made When Purchasing Business Insurance
Over the years, we have seen well-intentioned insurance and risk products buyers make decisions that, while they may appear to help the organization, actually hurt it in the end. Here is a list of top mistakes that uninformed insurance buyers often make. We provide it to you in the hope that you can learn from the errors of others.
Top mistakes made by uninformed insurance buyers:
“Bidding-Out My Insurance Is the Best Way to Get the Best Program.”
False. Most insurance buyers have the false belief that getting three bids from three different agents is the best way to make sure they are getting the best “deal.” This is like asking a builder to provide a bid without seeing the building plans. When talking to your agent about your insurance issues, give the agent the full set of “plans,” including losses and premiums, financial data, and policies. Utilizing the services of one agent whom you can trust will lead to reducing short term and long-term costs. Comparing multiple factors, including terms, conditions, and premiums is crucial, as even the best-priced policy can fall short in areas.
“Two Agents Are Better Than One.”
False. Your agent can provide valuable services including educating you about what coverage you need and may not need. Your agent can search the market for the best possible combination of coverage, price, and service. Having two agents can create gaps or coverage issues. It is best to allow one agent to understand your business thoroughly and then design a business insurance program specifically for you.
“I Don’t Need to Have a Relationship With My Agent.”
False. Many buyers have a false belief that the agent’s only function is to place coverage and administer insurance. Your broker/agent should be offering much more than that. Your broker should be a trusted adviser who helps you identify risk factors, and develops solutions that help you to manage these issues.
“My Policy Covers All Losses.”
False. Your business insurance policy is intended to cover unexpected losses and accidents subject to the policy terms. There are limitations and exclusions in every policy.
“I Don’t Need to Consider Different Kinds of Coverage.”
Every business should consider the following kinds of business insurance products.
As an Independent Insurance Agency we represent many insurance companies to fit your businesses dynamic needs. Whether you're a new business or a small business, we can help. Being an Independent Agent means we are not only your agent, but we are your insurance broker as well. We understand every business and industry is unique, so we will work with you to find the best business insurance coverage at the lowest rate. Contact us today for a free quote.