Traditional Isn’t Always Best

When you buy a refrigerator you call three different stores and pick the one that has the lowest price. When you are buying a car you call a few dealers and choose the one that gives you the lowest price. When you are a business owner and you need insurance you call a few agents, hand them your current policies and go with the one who gives you the cheapest quote on a new policy.  Does this sound about right?  If it does you could be putting your business at risk.  When you view insurance as a commodity you will get exactly that, a commodity. You will get a big stack of policies that show a bunch of limits. You’ll stick those policies in a drawer and never look at them. You now have “insurance”. But do you really?

Insurance is not a car, or a TV or a refrigerator. You can’t walk into a store and pick insurance from a shelf (despite what the pretty waitress or lizard want you to believe).  Insurance policies are not mass produced for the average American. Insurance policies must be specifically tailored to each individual business. Even if the businesses are similar they still will need to be customized. For instance two manufacturers could have very different needs for their insurance and risk management. One manufacturer could be making pillows while the other manufacturer could be making dynamite. You can’t just walk into the store and ask for “manufacturing insurance”.

Don’t get me wrong, getting quotes from the insurance marketplace is not a bad thing; however, using multiple agents to get multiple quotes from the insurance marketplace IS a bad thing. You will have multiple insurance agents fighting over markets and carving out coverage’s because they know you are going to choose the cheapest quote. Then each agent will try to convince you why their quote is the best. Wouldn’t it be easier to have one agent get quotes from multiple carriers and then you and your agent can sit down and discuss each quote and choose the one that makes the most sense for you and your business?  The reality is that the cheapest quote may not have a specific coverage that your business needs.

When you have a legal issue or an accounting issue you don’t bring in multiple attorneys and CPAs, so why would you bring in multiple insurance agents? You should find an insurance agent whom you are comfortable with and who you are confident with in their abilities to ensure your business is covered in the event of a loss. Insurance is more about finding a reliable advisor looking out for you and not one that treats it like a commodity.  For more information about the insurance purchasing process or to discuss your current policies you can reach me by calling our office or sending me an email at jared@fbinsure.com