5 Common Insurance Mistakes

Not Reading Your Policy

Let’s face it.  Insurance documents are long, hard-to-read and boring.  Besides, the vast majority of companies are committed to their customers and keeping their promise to pay.  The problem is that sometimes their idea of what they should provide and your idea of what you should receive may be different.

Thinking Your Agent Read It                                                                                                                                                    Many agents assume that because a policy is targeted toward certain businesses, their clients will be satisfied.  This is dangerous thinking.  Make certain your agent describes your coverages and the events that trigger them in detail.

Viewing Insurance as a Commodity

Insurance policies aren’t all the same.  Standardized forms are insufficient for protecting businessowners from their unique risks.  Insurers have tailored many endorsements for different businesses.  Again, you have to understand your policy.  Once you have a loss, it’s too late to renegotiate.  

Buying from a Friend

If we had a dollar for every time a business owner said that he wasn’t interested in a second opinion because his or her policy was handled by a friend or relative, we’d retire.  We understand, and try to support businesses owned by friends and customers, too.   But… would you choose your doctor this way? 

You health is too valuable to go to anyone other than a highly competent professional.  Your health of your business is also valuable, and we’d encourage you to partner with an experienced commercial insurance agent.

Not Managing Risk

Too many clients purchase a policy, file it away and assume that they’re done with risk management altogether.  Unfortunately, for satisfied clients it’s not that easy.  Commercial insurance is a paradox.  You buy a policy to protect your assets against damages you can’t afford to pay by yourself.  But if you have losses your rates can go up… Ongoing and active risk management is essential to keeping costs down.  Basic loss control and safety programs are a core part of sound risk management.  Having the right insurance partner makes this much easier.