Getting The Right Insurance

Finding the right insurance for your business.

  • Before speaking with an insurance representative, write down a clear statement of your expectations.
  • Do not withhold any important information from your insurance representative about your business and its exposure to loss. Treat the individual as a professional helper.
  • Get at least three competitive bids using brokers, direct agents and independent agents
  • Avoid duplication and overlap in policies; you will be paying for insurance you do not need.
  • Make sure the insurance firm is an “admitted insurance company.” If so, it should have a solvency fund should a catastrophe put the insurance company in danger of going under.
  • Do not consider any form of self-insurance. The pool of funds necessary to safely insure losses is extraordinarily large.
  • Get your insurance coverage reassessed on an annual basis. As your firm grows, so do your needs and potential liabilities. Underinsurance ranks as a major problem with expanding firms. Get an independent appraiser to value your property; if it has been more than five years since it was last appraised, chance are you’re in for a surprise.
  • Keep complete records of your insurance policies, premiums paid, itemized losses and loss recoveries. This information will help you get better coverage at lower costs in the future.
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