That Will NEVER Happen insurance to My Company

 Countless already again how many times I've sat down with C.E.O. 's, C.F.O. 's and Starring for them tells me that specific examples of claims that will never happen to them. Well, News flash ... has happened to some of my clients! And it doesn't matter anymore how much control, safety measures and a positive corporate culture you may have, this could happen to your company. Recently we emphasize the importance for a company for a crime coverage. The owner is insisting that this never would have happened to his company. He denied coverage and he now handles more than $ 350,000 financial losses due to an employee who was stealing from the company.

As an insurance advisor, it is my job to tell you about all the things that can happen and prepare the business for financial hardship or simple inconvenience in the wake of a claim.  Are some instances scary and turn into disasters?  Yes.  Is that every claim?  No.  You definitely don't have to over-insure in every instance.  I am not a fan of spending money carelessly.  But don't go the ignorant route and assume that claims you hear about on television or in the news could never happen to your company.

When I am developing an insurance program for my insured's, one of my client's primary concerns is the deductible or self insured retention amount.  As this should be a concern, some of the less experienced clients tend to associate the deductible, whether high or low, with the premium amount.  The higher the deductible the lower the premium dips.  The lower the deductible, the higher the premium rises.

As a rule of thumb, is this correct?  For the most part, yes.  However, what does it mean to take on a bigger deductible vs. A smaller one?  Some business owners only care about the bottom line and never think that anything will ever happen to their business.  These are the businesses that are O.K. By taking a bigger deductible or S.I.R. Risk, even if it isn't the smartest thing to do in the books.

My advice is to seriously evaluate financially what your company can afford for when of a claim where a deductible or S.I.R. Needs to be paid.  Whether that be a $2,500 deductible or a $50,000 S.I.R., pay attention to these key insurance factors and not just the bottom line.  Is this deductible per claim or per occurrence?  A per claim deductible could mean you are paying out multiple deductibles for one particular event or loss which could add up quickly.

As an insurance advisor, it is my job to tell you about all the things that can happen and prepare the business for financial hardship or simple inconvenience in the wake of a claim.  Are some instances scary and turn into disasters?  Yes.  Is that every claim?  No.  You definitely don't have to over-insure in every instance.  I am not a fan of spending money carelessly.  But don't go the ignorant route and assume that claims you hear about on television or in the news could never happen to your company.

When I am developing an insurance program for my insured's, one of my client's primary concerns is the deductible or self insured retention amount.  As this should be a concern, some of the less experienced clients tend to associate the deductible, whether high or low, with the premium amount.  The higher the deductible the lower the premium dips.  The lower the deductible, the higher the premium rises.

As a rule of thumb, is this correct?  For the most part, yes.  However, what does it mean to take on a bigger deductible vs. a smaller one?  Some business owners only care about the bottom line and never think that anything will ever happen to their business.  These are the businesses that are O.K. By taking a bigger deductible or S.I.R. Risk, even if it isn't the smartest thing to do in the books.

                                 Read :  Importance Of Journey Insurance Plan For USA People

My advice is to seriously evaluate financially what your company can afford for when of a claim where a deductible or S.I.R. Needs to be paid.  Whether that be a $2,500 deductible or a $50,000 S.I.R., pay attention to these key insurance factors and not just the bottom line.  Is this deductible per claim or per occurrence?  A per claim deductible could mean you are paying out multiple deductibles for one particular event or loss which could add up quickly.