The CIA Insider: The Hard Truth About Your Commercial Insurance Coverage
Commercial insurance coverage – that necessary evil. Of course, you need your business to be protected. But if your policy is keeping you from pursuing bigger, and more profitable clients, it may be more of an evil than you realize!
We recently sat down with George Gavaris, the owner of Central Insurance Agency (also known as CIA), to discuss why he believes the traditional way of providing commercial insurance to specialty businesses needs to change and change fast. George is a longtime insurance industry expert who has a unique understanding of the risks a company faces and how impactful the right coverage can be on the bottom line.
“Some vendors and partners may require their clients to have specific types or amounts of insurance coverage before entering into a contract,” Gavaris explains. “By having the right insurance, you open doors to potential business opportunities that otherwise may be closed to you.”
“The bottom line is that your policy should allow you to pursue new business as vigorously as you see fit,” Gavaris continued. “And the only way to do that is to find out if your insurance is truly working for you.”
Here are the top 3 questions that Gavaris and his CIA team suggest you consider as you look to protect your growth:
1. How well does your broker know your operations and type of business?
The level of understanding your insurance broker has about your operations and business depends on the communication and collaboration between the two of you. A good insurance broker should make every effort to understand the intricacies of your business, including its operations, risks, and unique characteristics. Don’t hesitate to ask questions and seek clarification on any and all aspects of your insurance coverage. Your broker should be willing to address any questions or concerns you may have. “Your broker should have an intimate knowledge of how your business operates and the bandwidth of your services,” said Gavaris. “With that knowledge, they can anticipate any policy changes that may be needed to ensure your growth.”
2. Does your broker properly categorize your staff?
Insurance brokers assess the nature of every job within your organization to determine the associated risks. The level of risk assigned to various staff can directly impact your coverage and premium. For example, an office administrator may be deemed a lower risk than a field technician or a construction worker. In addition, the experience and training of your staff can influence how they are categorized. Well-trained and experienced employees may be considered a lower risk than those who are less experienced or have limited training. The size of your workforce can also be a factor in insurance categorization. Larger businesses will have different risk profiles than smaller ones, and premiums should be adjusted accordingly. “Your broker should be checking in with you periodically to get the most up-to-date information about your current staff,” said Gavaris. “Adjustments to your policy and premiums should be updated accordingly.”
3. Does your broker do a line-by-line assessment of your policy to optimize your coverage and savings?
That’s right, we said a line-by-line assessment. Is your broker examining and analyzing each provision of your commercial insurance policy to assess its clarity, adequacy, and potential risk, as well as its relevance to your needs today? The policy should be further scrutinized to identify the specific terms, conditions, exclusions, and limitations that govern the coverage.
“Without a doubt, a good insurance broker properly plans for your growth and has the resources to grow with you,” said Gavaris. “After all, why would you settle for a policy that doesn’t properly protect you or prevents your company from doing the work you want to do? It will invariably cost you in premiums and potential growth.”
Click here to learn more about the no-obligation CIA Policy Review and Assessment: https://ciainsures.com/request-a-policy-review/