1. Make Sure your agent has all the tools to service your account.
Does your agent represent more than one company?
Does your agent have a backup when they are sick or on vacation?
Is your agent accessible when you need him or her?
Does your agent keep their promise?
Does your agent specialize in your industry or profession?
Does your agent have strong relationships with insurance companies?
  1. Insurance Company Rating—Just like our kids get a report card at school, insurance companies are rated A, B, C, D and F.  Make sure your company has the best grade.  There are two reasons:
The lower the grade, the more potential for the company to go out of business.
The lower the grade, the less likely any one who wants evidence of insurance, the state, county, federal government or your landlord or bank would accept the company.
  1. If you have independent contractors working for you be sure to ask for and receive evidence of insurance.  If not, you may have to pay for the Worker's Compensation and General Liability insurance of the employees of your independent contractors, and you may be liable and have to pay for acts caused by your independent contractors.  You also want to be named as an additional insured on your independent contractors insurance policy.  Insist on it!

Be aware of what your liability policy does
and does not cover:

  1. If you are sued because of damage to property in your care, custody and control, your liability insurance policy does not protect you.  Be sure to notify your agent if any of the above circumstances exist.
  1. You fire a driver because of a poor driving record.  The driver sued you and was awarded $85,000 almost 3 years later.  Your liability insurance doesn't protect you for:
Discrimination
Wrongful termination
Government suits
  1. When you sign a contract be sure to let your insurance agent know. Many policies don't protect you for liability assumed under certain types of contracts.
  1. Protect your assets with enough liability insurance.  Be aware that future earnings count in a judgment against you.  Make sure you have enough liability to sleep at night.  It costs little more to buy $1,000,000 protection than $500,000.

If you have questions or comment on any of these issues, call and talk with us.

Sincerely,

Jan Pinney