Insurance is one of those things we all need and we all at the same time we all avoid thinking about as much as we can. It is an overhead expense that does not make us money. It will only cost us money. We are betting that something will go wrong and then hoping it doesn’t.
Insurance is complicated, boring and a moving target. I have always had a trusted insurance man. Together we do an annual review of all our policies.
Combining policies might help you save you a few dollars and loyalty to a company might earn you return loyalty in bad market… but maybe not. I was with the same insurance company for over ten years while many of my friends in the industry were shopping the rates every year to save a few dollars.. When an insurance crisis hit the housing industry and all my competitors were facing triple the insurance rates if they could get insurance at all my rates did not change. It was a problem I heard about but did not experience. It helps that I never had a claim. It was not great planning it was a combination good practices and a lot of luck.
Get good advice on just how much insurance you need based on your volume and industry. There are other ways to limit your liability. Talk to your insurance professional about best practices to reduce exposure and to your lawyer holding some assets outside the company. Too little insurance can put you at risk. Too much can make you a target.
All original content ©Thomas Robinson 2010
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