The very first time that I work with a potential client, I'll often ask them if they think they're getting good value for their business insurance dollar. Most of the time, the response is a chuckle followed by something along the line of "How in the world should I know if I’m paying too much for my insurance?"
Ottawa - June 25, 2013 - The very first time that I work with a potential client, I'll often ask them if they think they're getting good value for their business insurance dollar. Most of the time, the response is a chuckle followed by something along the line of "How in the world should I know if I’m paying too much for my insurance?" But there is a very simple way to know if you’re paying fair
market price but it has nothing to do with you; it's all about your broker.
Your broker should be working on your behalf on a number of fronts. Part of their job is that of a risk manager, making suggestions on how to mitigate or eliminate the risks that your company faces every day. Another part of their job is to ensure that not only do you have the
correct insurance products protecting your operation, but also that your annual premium is
competitive. Most brokers call that last part "shopping around" when they compare the cost of
your insurance products with a number of different insurance companies.
Shopping around is great but there are some important things to watch out for. It’s important to
compare “apples-to-apples” insurance coverage when you’re faced with a choice of insurers.
Your broker should ensure that not only are the limits of insurance identical to each other, but
also that the deductibles are the same and also that each of the policies will respond the same
way in case of a loss. Only when all of the insurance players line up accordingly, can you really compare “apples-to-apples”. Once your broker has the comparisons available, there’s one more
thing that you should do – ask to see the results.
Often, a broker may tell you that they shopped around but that is where the conversation ends.
Instead, the broker should provide you with a spreadsheet which lists the insurance companies
that were approached along with their responses, including their quoted premium. When you
have a document in your hands that lays out for you exactly the coverages and premium quoted
from seven different insurers, that’s a powerful tool that will help you decide if in fact you are getting “good value” relative to the insurance market place.
And one final thought on the matter; if your broker isn’t willing to show you the results of their
shopping, ask them why. And if you’re not satisfied with their answer, contact me and I’ll do the shopping for you…and share with you all of the results.
Lorne Wiebe is a well known former Cornwall broadcaster. Even though he now calls Ottawa his home, he has a special affinity for Cornwall and SD and G. He now works at Rhodes & Williams Insurance Ltd. and partners with the local business community to help them deal with their day to day risks. If you have questions or wish to contact Lorne, you can email him at Lornew@rhodeswilliams.com
Presented here is a general article about insurance. The discussion is general in nature, and does not constitute insurance advice. This is not intended to be a description of coverage, and does not include details of the coverage nor the terms, conditions, qualifications, limitations and exclusions applicable. Policies should be reviewed in their entirety and related to your specific operations. Many insurers permit changes (Changes to insurance policies are usually called 'endorsements' or 'riders') in their limitations or exclusions to match your specific requirements. As insurance advice must be tailored to the specific circumstances of each situation, nothing provided herein should be used as a substitute for the advice of a competent insurance broker. IN NO EVENT WILL RHODES & WILLIAMS LIMITED BE LIABLE FOR ANY DAMAGES WHATSOEVER, INCLUDING SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES, ARISING OUT OF OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THE INFORMATION PRESENTED IN THIS DOCUMENT.
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