The most visible cost of any insurance policy is the premium. However, wether it is your personal insurance or business/professional insurance, the premium is not the most significant cost of your program. Costs that can far exceed the the premium include:
- Coverage gaps
- Your time
- Failure to meet contractual obligations
- Buying coverage features without considering the ‘risks’ that you face
While it is true that many standard types of insurance are similar in content, the insurance product is made up of the policy, the advisor selling the policy and the advisor’s customer service team. With the right ‘product’ the protection is likely to meet or exceed your expectations, but making it work takes an initial investment of time and effort.
How do you make the process and the coverage work effectively?
Step One - Character
Decide what characteristics are important to you in an insurance advisor:
- Knowledge
- Experience
- Access
- Caring
- Negotiation Skill
- Rapport
Step Two - Risk Profile
Be prepared to discuss:
For Business/Professional Insurance
- Streams of revenue
- Assets
- Organizational Culture
- Employee Turnover
- Products/Services - past, present, future
- Economic Opportunities/Concerns
- Risk Tolerance
- Contractual Relationships
- How/Why You Do What You Do
For Personal Insurance
- Occupation/Profession
- Assets
- Volunteer Work
- Interests, Activities & Hobbies
- Family Members
- Household Management/Maintenance
- Financial Opportunities/Concerns
- Risk Tolerance
Step Three - Selection
Select an advisor based upon characteristics which you value and these additional considerations:
- Do you prefer a referral
- Are you comfortable making the initial selection via the “web”
- Is the advisor willing to provide references
- Ask the advisor to “walk you thru the process”
- “Test the waters” - have some questions prepared
- Decide if you’d like to meet with multiple advisors
- Value Experience, Education & Certifications
Step Four - Insurance Program
At this point you are ready to meet with an advisor who should review your needs in order to prepare an appropriate “insurance program.” It is best to avoid advisors content to sell you individual policies without taking the time to understand the various risk exposures you and/or your organization face.
Questions? Contact me.
W. 908-879-7224 C. 908-507-7126 or Email [email protected]