How to Win at Insurance
Insurance is a grudge purchase. What can you do to Win at Insurance?
For many insurance buyers, the thought of buying insurance is nothing to look forward to. A task so not looked forward to that when given a choice between a Root Canal or the chance to “Buy Insurance”, the Root Canal wins 8 of 10. (that’s a good guess)
Ok, so Insurance is a have to and nothing to get excited about. The process is similar to applying for a loan, answering questions, waiting on the agent or company to provide numbers, and then make a decision to purchase based on nothing you understand.
Thank you very much, may I have another?
Then, God forbid, you have a claim. Most insurance buyers rarely have claims, and therefore are uninitiated to the claims process. This is where you get schooled on what it is that you purchased, a promise with many exceptions, and the many people between you and your claims settlement; adjuster, remediation contractor, mold contractor, all who speak a foreign language and expect you to keep up. This process takes your time, and in many cases has the potential for you, the client, to receive less than you expected. Obviously this is not every case, but you probably know someone who has had this experience.
What are your alternatives to buying insurance?
- You can always “self insure”.
That’s a dicey option. If you never have a loss, you win. But, if you have a claim, it could wipe you out.
- Create your own insurance company
For those with ample means, cash flow and few claims, there is another option.
Win at Insurance
A Captive Insurance company is a wholly owned subsidiary created to provide insurance to its non-insurance parent company (or companies). Captives are established to meet the risk-management needs of the owners or members.
Hale Stewart, author of US Captive Insurance Law, joined me to speak about what a captive is, how it works and who can benefit from it.
There are many advantages to proceeding with a captive.
- A broader contract: the chance to cover exposures that your standard company will not.
- Easier claims adjustment.
- Potentially lower insurance costs.
- Tax advantages provided to insurance companies
To learn more, sign up for our free webinar and receive a free white paper explaining the benefits of creating a Captive Insurance Company.
WHEN: August 4, 2016
To contact Hale