Working with a great insurance broker helps prepare your team to be business-ready.
You’ve reviewed your operations and made the appropriate procedural and safety changes. You’ve updated your operations and employee manuals and seemingly have everything in place. Well, now where do you go to get insurance? Finding a great broker is paramount in getting proper insurance coverage for your company.
This is the last of a series of posts on insurance. In previous posts, we’ve covered risk identification, risk stratification and building a fort to protect your business. The last missing piece is finding the insurance expert that weighs risks, costs and coverage.
A great insurance agent makes all the difference.
In this 4-part blog post series of on insurance, I’ve purposefully withheld discussing your insurance agent or broker. Why is that? Because a great insurance broker is worth his or her weight in gold! A good agent cannot be under emphasized and you need to take the time to find that perfect partner who will work with you. Why? Here are 4 ways a great agent brings value :
- They know your business. A great broker will know how your business runs, operates and based on their experience, will recommend what coverage you need and recommend the amounts. They provide similar business benchmarking data so you can learn from other like businesses and which coverage they have chosen too.
- Bring in experts to help strengthen your fort. Great agents have their connections to experts that will help protect your business. Whether it is safety training to lower your X-Mod rate or someone to help with overall security, your insurance agent will be able to help you prioritize what you need to do to minimize risks and lower costs.
- Have an interest in your success. Great agents like to work with successful people. They enjoy the interaction and they like doing a great job. They will continually work with you to monitor key measurements and help you reduce your premiums.
- Will recommend alternatives on how to acquire insurance coverage. As business owners and managers, we make decisions all the time and need to be presented with the best options for our company.
Is captive insurance part of your ship shape strategy?
Years ago, a captive insurance company was perceived as an alternative for only the very large companies. Recently I worked with a mid-sized company that belonged to a captive. And the savings were impressive. And laws have changed to open captive insurance options to more and smaller businesses. But a captive is not for everyone. A good captive will require you to have sound processes and solid operating principles in place. They don’t like claims. A captive understands every business has rough patches, but in the long run, captive insurance can produce significant savings. So ask your broker about captive insurance. If your broker waves it off, they are not a great broker, only mediocre. A great broker will either say let’s investigate, or will give you reasons why the business is not ready for a captive. But a great broker will help set the strategies needed to have a captive insurance, if one works for your business.
How often should you change insurance companies?
Insurance companies are like any other business. There are good ones and bad ones. When you find a good one, meaning they work with you, help you be a better company and understand your needs, you should stay with them. Insurance companies know how often you change insurance companies. If you change too often, you will find fewer companies willing to provide coverage. They don’t want to go through all the work to get started knowing that you will probably leave in a year. And frequent changes will discourage a great broker and they will probably suggest someone else.
Going out to bid every couple of years is good business practice. If nothing else, to verify you are getting competitive rates. Insurance companies expect it, a great broker supports it.
My Role in Helping Business Owners
As your B2B CFO®, everything I do is to improve the life of you, the business owner. You are important to society. I have unique processes and tools to help eliminate the barriers to your success. Let’s talk about how I can improve your life.
Other blog posts in this series are:
- What Do Insurance Companies Do Best? Deny Claims!
- Lions, Tigers and Bears, Oh My!
- Building the Fort to Protect Your Business
I Bring Financial Knowledge, Provide Financial Training and GenerateFinancial Stability
I am fluent in “financialspeak” and can translate your monthly numbers into strategies for future success. I take companies to a higher level of success
Email : AndyAnderson@b2bcfo.com. Phone: 909-732-4917
Other blog series:
- SWOT This
- CFO and CPA – Same people right? WRONG!
- Does “Despicable Me” Describe Your Banker?
- Congratulations on Selling Your Business- Now Back to Work!
- Insuring Your Business