In this article, I’m going to answer the question of how can you compare business insurance policies and quotes to make sure you’re getting the best deal.
I wanted to talk about this subject since this week I worked on three deals where business owners came to me after getting quotes on business insurance elsewhere and frankly, I was shocked at how bad these quotes were.
Each business owner thought they had evaluated their options correctly and thought they had found some savings.
That was until I uncovered the mistakes.
Those mistakes in both the quotes and the existing policies for these three clients included dangerous exclusions, omission of key endorsements, missing coverage parts – like an umbrella, missed classifications, incorrect exposure rating elements, and more.
The problems ranged from very troublesome that if a claim occurred it could spell bankruptcy and in others, it would mean a huge premium bill at audit time.
Business insurance policies and quotes are complex contracts and need to be evaluated on the whole
Meaning you can’t just look at the limits of coverage provided and if they are all equal then the lowest price wins.
Rarely it is that simple. You need to evaluate the whole contract.
The terms, conditions, exclusions, rating calculations, etc.
So, you’re probably saying I don’t know how to read a policy and understand it entirely, how do I make a good decision?
I think the answer is that you need to work with a skilled broker who you can trust. In two of these situations, quotes were obtained online by the clients with little to no human interaction.
Is this bad?
Maybe, maybe not.
If you’re a really small business and there’s not a lot of complexity to your business, then maybe buying online without human interaction is okay.
But if there’s any level of complexity, I think you’re still better off working with a human and preferably a smart and experienced human.
It may sound like I’m doing some self-promoting here – and, well, you’d be right – but the point is that it doesn’t cost more to work with an expert, so why do it on your own and get an inferior product?
The purpose of this video and post may have been to vent a little over how poorly some insurance providers do their jobs, whether they’re traditional agents and brokers, or more modern digital providers selling through artificial intelligence or through you filling in forms.
There are two things I want to emphasize
- Business insurance is complex, but there’s no need to go it alone
- Your business may be your most valuable asset so it makes sense to protect it properly
Speak to an expert, someone that’s been in the business a while, someone who’s earned a professional designation or two, someone you can trust and like.
Need help? This is what I do.
I work exclusively with business owners, so reach out, and let’s connect.
Thanks!
