Not Sure What to Expect?
If you are not sure what you expect, then how can your expectations be met?
No one would dispute the value of a well-structured commercial and professional liability insurance program, particularly during business development negotiations or after a claim. A proper program needs to address critical business needs which include risk management, contractual obligations, business development and contingency planning.
Unfortunately, price/premium has been trained into the seller and the buyers mind too often leaving price/premium as the only common denominator around which the insurance conversation is based.
The complexity and the general lack of understanding of insurance products, by the seller and the buyer, causes price to be leveraged as the determining factor for decision making.
If what you spend is more important than what you get, then the price/premium thought process will suit you well.
If you are effecting an insurance program for a purpose, then you require a more effective strategy; a few simple points to include in this strategy follow:
What are your expectations?
Do you have specific concerns?
Is it necessary to meet contractual obligations such as insurance requirements or broad indemnifications that go beyond the enumerated insurance?
Are you considering “Goodwill” and your ability to assure your client’s that you have made sound business decisions in support of your work for them?
Does the decision revolve around a risk management initiative?
Change your mindset – insurance is not a commodity.
Setting expectations about your insurance program is the best way to take the conversation from commodity to asset, your expectations will create a dialog about the content of the insurance program.
Understand the skills that various insurance professionals have to offer. Is your insurance professional just a salesperson or is your insurance professional respected by others as a trusted advisor and an important business asset?
Is it clear how your insurance program addresses the contracts that you are subject to?
It is important to address specified insurance requirements and synchronize coverage with these requirements.
Broad indemnification agreements often go beyond the intentions of insurance; review contractual indemnifications and understand the extent and limitations of your coverage. .
Is your business unique? Find professionals capable of understanding and then addressing ‘unique.’
Sound insurance decisions today add value to your business tomorrow.
This is the value of experience; this is the advantage that you get when you work with James Venezia.