Finding the best insurance broker to oversee your risk management is like dating – you weed through several options to find the one who checks off all the boxes.
Managing a successful business means staying ahead of the pitfalls of risk inherent to all business operations. A holistic risk management approach is comprised of many moving parts, and selecting the right insurance is crucial to any risk mitigation strategy. Insurance is an investment that protects organizations’ long-term financial health, and some types of insurance are even required by law.
With so many types of insurance, regulations, and carriers to navigate, the prospect of picking the right insurance might be an overwhelming process. Considering how carriers are currently limiting capacity, decreasing their appetite for risk, and increasing underwriting scrutiny while offering less favorable terms for coverage at a higher premium cost as a response to unpredictable loss patterns sustained over years, the placement and purchase of insurance is more challenging now than it has ever been.
Though you might not be able to foresee every issue that may impact your business or the fluctuations of the insurance market, there are some factors you should consider when weighing your coverage options.
✔ WHAT TYPES OF INSURANCE POLICIES DO I NEED?
Your industry, location, exposure to risk, and many more factors determine the types of insurance you’ll need to protect your business.
✔ WHICH INSURANCE IS LEGALLY REQUIRED FOR YOU TO HAVE?
State, industry, clients, landlords, and lenders may require you to purchase certain types of coverage.
✔ ARE THERE RISKS SPECIFIC TO YOUR INDUSTRY?
Different industries deal with different risks, and if you understand these risks, you can purchase the right insurance safeguard against them.
✔ HOW DO YOU DETERMINE THE RIGHT PREMIUM LIMITS AND DEDUCTIBLE?
Though it might be tempting to spend as little as possible on insurance, this isn’t necessarily the wisest approach because lawsuits and settlements could be financially devastating to your business. When it comes to choosing a deductible, be sure you’ll be able to pay the amount if a claim arises.
✔ WHEN IS THE LAST TIME YOU ASSESSED THE COVERAGE YOU HAVE?
Regularly taking stock of your insurance portfolio is the best way to make sure you’re getting the most favorable terms for coverage and that your coverage evolves with your business as it changes.
✔ WHICH FACTORS IMPACT YOUR INSURANCE COST?
Beyond baseline risks associated with operating any business that are out of your control, knowing which risk factors are within your control can help keep your premiums down.
SO, HOW DOES A BROKER FIT INTO THIS PROCESS?
Operating an organization and becoming an expert in your industry is enough work as is, without factoring insurance in the picture. Buying insurance for a business isn’t like going to the store to get a new change of
clothes. Finding and purchasing the right insurance for your company’s unique risk fingerprint requires expertise, and without the right experience, it’s easy to make mistakes.
Like with most major life purchases, when you’re in the market for insurance, you should partner with someone who has proven experience navigating the ins and outs of both insurance and your industry. Working with the right broker can be the difference between you being sufficiently covered after a loss, or being stuck with an exorbitant bill for damages. Brokers have a fiduciary responsibility to provide the best recommendations to protect your assets in the short and long term. The right broker will advocate on your behalf and act in your best interest without you having to ask.
Click here for a list of questions you should ask a prospective broker to make sure your company selects the best broker for its needs. And don’t forget, our team at RogersGray is always here to help and answer questions.