Scott Simmonds - Insurance Newsletter

Expert Insurance Help, Risk Analysis, and Mitigation
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Discover Just How Simple Your Business Insurance Can Be...

December, 2008
Issue #102 - Since 2000

What is Insurance

Let’s not make this complicated. Insurance is a tool to transfer the financial consequences of certain risks you face from you to the insurance company. Those risks exist based on property you own or actions you take.

Risk can be addressed by avoiding the exposure (sell your home and you don’t have to worry about it burning down), transferring the risk (using insurance or a contract) or retaining the risk. Usually we combine techniques – you insure your house (transfer), but take a deductible to help lower the premium (retention). You may insure your building for fire (transfer), but decide not to buy coverage for flood (retention).

Insurance contractually transfers the risk from the policyholder to the insurance company. The policy spells out what is insured and the terms and conditions of the transaction. The policy also tells you what is not covered – the exclusions.

Business Insurance Mistake #4

This is from my free ebook, The 20 Biggest Business Insurance Mistakes:

Mistake #4 - Splitting Coverage between Two Insurance Agents

You’ll get a better insurance program if one agent handles your entire insurance account. This is true of both your business and personal insurance. You may even want your business and personal insurance with the same agent.

Having one agent will save you both time and aggravation. Having one agent means that you make one call when you have a problem or a change in your life or business. Having one agent helps to prevent gaps and overlaps in coverage.

If you follow the advice in the previous section, one agent means only one review meeting, saving you time.

I’ve worked with several insurance buyers who thought that it was best to split the business up. Their idea was to let the two (or three) agents fight it out, scrapping for the business. I have never found that this works very well. Come claim time it can be a nightmare when each points to the other for coverage.

If you currently have two agents, you know which one is the better service provider. Have that agent handle your entire insurance account.

Insurance Marketplace - To Bid or Not to Bid

If you have not bid your insurance for a few years, now is the time. In most cases, not bidding your insurance now will result in higher premiums and coverage that is not as broad as it could be.

My booklet, "How to Bid Your Insurance," is now on sale, or download it here for free.

Search Feature

Search my website and blog for any insurance topic. Type it in and get the info you need. If the topic isn't covered anywhere, send me a note. I'm always looking for new insurance topics to pontificate on.

Do You Have the Right Insurance?

Contact me to discuss an unbiased review of your insurance program. Do you have the right coverage? Can your policies be fine-tuned to improve the protection? Can changes be made to ease the administrative burden insurance causes? Are you getting the service you should from your broker? I can help. Remember, I don't sell insurance so I'm unbiased.

Please Feel Free To Forward This Newsletter To Your Business Associates

Scott Simmonds, CPCU, ARM, CMC
Insurance Consulting
Phone 207-284-0085
Fax 802-992-4027
Scott@ScottSimmonds.com
www.ScottSimmonds.com

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Comments regarding insurance policies or products in this newsletter do not constitute an endorsement. I accept no fees of any kind from any company mentioned in this newsletter.