| Prompt Insurance Agency, LLC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Questions? Call (949) 351-8767 |
|
All insurance policies are not created equal. This is a fundamental fact that every insurance buyer should bear in mind when deciding upon what type of insurance coverage to buy and which insurance agency to buy it from. Insurance policies provide coverage for loss events. The losses and/or damages covered by the insurance policy are the building blocks that define what that policy is. For this reason, buying a policy based solely upon premium cost can be a dangerous practice. When you first open a dialog with your insurance professional, he or she will want to know what type of coverage you already have - and probably, what it is costing you as well. Most competitive insurance placements are based upon anticipating and planning for very specific types of loss possibilities. The cost is a secondary issue - though it may not seem so to you - because an insurance company can easily omit key coverage elements or insert modifiers that limit their exposure (at your "expense") and allow them to offer an apparently lower rate. This fundamental insurance company strategy is why you want to do some due diligence on your insurance agent as well as the insurance carrier his agency is planning to place you with. An insurance professional who is in the insurance business for the long haul will first make sure that you are covered. Then, rate shopping will come into play as a secondary issue. After you've gained a comfort level with your insurance professional and their ability to analyze your business insurance needs - you will want to take a look at the insurance companies they are placing you with. Almost all insurance companies have a financial rating called a "Best's Rating." You can find the "A.M. Best's Guide to Property and Casualty Insurance Companies" in most libraries but you can also visit their website at www.ambest.com for more information, including Underwriting guides and more. Make sure you buy insurance only from carriers with an "A" rating or better. This may not always be possible if you have some unique insurance requirements… but if not, at least avoid those insurance companies without a "Best's" rating or with a low "Best's" rating. Also, try to place your insurance policies with companies that are "Admitted" to do business in California. Again - not always possible, especially if special insurance needs exist or insurance from an "outside" company offers substantially more value. In addition - buy from an insurance agency with a track record in your area of business. This is easy to determine. Your conversations with your agent will help you develop a feel for how well he or she knows your line of business. Don't be afraid to ask for personal and professional references. Do they belong to professional organizations? Are they licensed? Do they belong to their local Chamber of Commerce? Can they provide you with names and phone numbers of other customers who are pleased enough with their service to offer an endorsement? Finally, carefully review the insurance coverage provided, and compare it with the insurance coverage you are seeking. This sounds obvious - but you don't want to buy policies that have a lot of Riders and sub-Riders defining too closely how you must run your business in order to be eligible for protection should the need arise. |
carriers
buying tips
underwriting