THE CHALLENGE: When you’re spending $1 million or more annually on insurance policies for your business, you’re unlikely to switch insurers simply to shave off a few cents on your premium. That’s especially the case if you’ve come to trust and rely on your broker as a business partner, rather than just another vendor. On the other hand, if you can save, say, $100,000 a year, then what? Tempting, right? That was the opportunity a competing brokerage had presented to one of our clients – the chance to save a considerable sum for coverage for their fast-growing construction business.
OUR ANALYSIS: Just like most things, you can always shop for a better deal on your premium. But we all know what can happen when we compare apples and oranges, right? Insurers, for starters, are not all alike. Their financial strength, their ability (and willingness) to cover claims and their service can all vary wildly. There are basically two kinds of insurers in the world: those that are “admitted” and those that are “non-admitted.” The non-admitted carriers are known to offer cheaper policies that come with less coverage. But unless your company has been deemed too big a risk for the “standard” market, you want to stay with admitted insurers only. Why? Because they’re the ones that, in case they fail, the state will then step in to make payments on claims as necessary. With non-admitted insurers, there is simply no guarantee that your claims will be paid.
WHAT ELSE?: Financial strength isn’t the only question to consider if you’re shopping for a new carrier. There’s service, too, especially when it comes to claims. Will you be dealing with a team that knows you and your business? That understands the challenges you face and has helped you find ways to make yours a safer workplace? Or will you be assigned to some third-party administrator you’ve never met in an office thousands of miles from your own?
ANYTHING ELSE?: Not all policies are the same and not all policies handle claims in the same way. For example, in a fast-growing, busy business, it’s easy to forget to notify the insurer every time you’ve added a new vehicle to your fleet or piece of equipment. Many policies won’t cover the loss of that equipment unless it’s “scheduled,” or added to the insurance company’s list of things the business owns and which it covers. The better policies require only an annual inventory of equipment and will cover losses even if the equipment has yet to be scheduled.
THE OUTCOME: Our story ends well. Rather than assume the risk, the client chose to stay with CCIG.
Want to learn more? Contact Andrew Mahoney at 720-330-7926 or AndrewM@thinkccig.com.