The 7 Deadly Sins of Small Business Insurance!

By Tom Larsen, Author, Speaker, Licensed Agent

        

         Why do you trust the financial protection of your business to an insurance agent who is not a specialist with retail and service businesses?

 

       Why do you trust the future of your business to someone who does not have a comprehensive understanding of the special problems small business people like you face every day? A specialist?  Absolutely. Look, insurance is a huge industry. There’s insurance for everything. (You want alien abduction insurance? You can buy it.) And nobody can specialize in all of it.

 

In fact, a professional independent broker can specialize in only a few niches — and really understand them. I do. I’ve studied the small business insurance market in our community for years.

 

Sin #1

 

Choosing the Wrong Agent or Broker

 

As strange as this may seem, your biggest problem might be your current insurance agent or broker. Not that he/she is not trying to do a good job, but if he does not handle Business Insurance on a day to day basis he is out of touch with a marketplace that is changing day to day.  Keeping up with the Business Insurance Industry is a full time job.

 

If your broker is not Independent he may not have the tools Available to do a good job. Non Independent agents must represent one company only.  He may not represent the best company for your business.

Sin #2

INSURANCE COMPANY RATING

 

Insurance Companies are given a grade, just think about the grades you received in high school or college. A,B,C,D,F. Insurance companies are given a financial report card by the A.M. Best Company.

                          (Need Immediate Help? Call us (716) 684-3203)

 

    An Insurance company with less than an “A” rating can be a potential problem for two reasons, 1). There is a risk of the company going out of business and 2). If you do any work for the state, county or city, they will usually not accept any company less than an “A” rating. Also, if you’re a contractor & hire on as subcontractor most general contractors will not accept any rating less than an “A”. With some state government offices and general contractors not accepting your liability insurance, you will be limited to the type of jobs you can accept.

                                               

                                                      Sin #3

EXCLUSIONS

First off let’s get one thing clear. All policies have exclusions.  You hear terms like all risk, special form, comprehensive, full coverage. Those phrases do not mean there are no exclusions.

 

In a business general liability policy all the exclusions are listed on the (Dec) front page of the policy or on the second page of the policy. The problem is that they are usually listed by form number, not by name.

 

In order to make sure you understand the exclusions, look at the form numbers on the front page and go find that form (by number) in the policy. (Usually the form number is in the bottom left hand corner).If you see a form number on the front of the policy but you cannot find that form in the policy, your policy is not complete! Someone forgot to add that form to the policy when the policy was put together. People make mistakes!

 

“The 7 Deadly Sins of Small Business Insurance!”

                                        Sin #4

Your Insurance Program Must Cover Worst Case

 

What do you do, besides panic? Fortunately, this isn’t reality. Not yet, anyway. It is a hypothetical situation. But imagine if it did occur. Would your insurance program cover the revenues you would lose? Would it help you pay your bills in the absence of your usual revenue stream? Would it reimburse you for the expenses you incur in getting your company back up to speed?

 

Your insurance program also must provide protection for the smaller disasters. What if a computer virus is unleashed on your networked PCs and files containing vital customer lists are corrupted? Can the information be recovered, and will your insurance pay for the cost of doing so?

 

You need insurance to cover anything that can shut down your business, or cause it to operate at less than full capacity. Anything less than that is not adequate. So how do you get adequate coverage? How can you know all?

The risks you face that could hamper your business?

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                                                Sin #5

   Not having a disaster recovery plan for your company.

 

Insurance can’t cover everything, and all coverage’s have limitations. So you need a plan that allows you to get the company back up and running as quickly as possible. If you don’t feel you have the expertise to design this plan, there are plenty of professionals out there who can do it for you.

 

For this recovery plan to be effective, you need to do the following:

 

  • Make duplicate records of both computerized and written documents.

 

  • Identify your company’s critical business activities and the resources needed to support them.

 

  • Plan for the worst-case scenario. Do research before a disaster strikes on alternative facilities, equipment and supplies, as well as alternative contractors.

 

  • Set up an emergency response plan and train your employees how to carry it out. Consider alternative power sources and communication systems, and supplies such as first-aid kits and flashlights.

 

  • Compile lists of important phone numbers and addresses. Including those of local & state emergency management agencies, major clients, contractors, suppliers, realtors, financial institutions, your insurance agent and phone numbers and addresses for your staff.                                                 

 

  • Implement a computer & communications strategy to prevent the loss of clients. The strategy should enable your clients to contact your company at its new, temporary location.

“The 7 Deadly Sins of Small Business Insurance!”

                                                         Sin#6

     Not having a business insurance specialist conduct a risk analysis of your company and its operations.

 

No two companies are the same, even two that are in the same business. You have your own building, your own computer system, and your own

equipment and your own staff.

                   

 

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You need an expert to assess your company and the specific risks it faces — and put together a comprehensive insurance plan to protect you.

 

I know:

.        Which insurers offer the most comprehensive coverage and the best rates for small businesses.

.        Which insurance companies to turn to for a small business’s specialized coverage needs.

               

                   Sin #7

Buying an insurance policy and renewing it for 5 or 6 or 7 years without reviewing it!

Hey times change, the world is not the same as it was 3-4 years ago. It is no different in insurance either – coverage’s, exclusions…..there is a new terrorism coverage too! So if you haven’t looked at your policy in awhile, now may be a good time to do that!

 

        No Charge, No Obligation

I will give you this information for FREE. No charge. No obligation. I do this because I’ve built my business on my reputation. I never hard-sell insurance. I’m in the service business. The better service I provide, the better it is for all of us.

 

My clients stay with us because of our service — and they refer us to their family and friends. (See testimonials on next page>>>>>)

 

I believe we serve small businesses in our community better than anyone in this area — in any profession. I believe this because we spend a lot of time with our clients, determining their needs, their level of risk, and finding the perfect insurance program for them.

 

So if you want to protect your business, and your future, from a crisis or catastrophe, call my office. My staff and I will be glad to help.

 

Sincerely,

                                                                                                  

 

Tom Larsen

President, Larsen & Associates Insurance Agency, Inc.

“Where an educated client is our best customer!”

8665 Sheridan Dr Williamsville, NY 14221                    (Call Now 716-684-3203)

 

P.S. – This is what some clients say:  

 

“I would like to thank you for your prompt & courteous service over the last few years. As a mortgage broker and a private investor, I have discovered how important it is to have a seasoned professional insurance broker on your team!”                                                                                                                                                     ………………………………………………Christopher Connelly, Lewiston, NY

“Larsen Insurance has saved me time & money. The savings are incredible & since the staff is so knowledgeable in the insurance industry – They have saved me thousands of $$$, as they have chosen the right policies for my rental properties & restaurant!”                                                                                                                  ………………………………………………..Joe Dallos, Fortunato’s,  Buffalo,NY  

* “Thank you very much for the quick service & understanding my needs.  My thanks to Tom Larsen for his superb work!!”                            David Kardasovski, Blasdell, NY

 

“Tom, I would like to thank you & your staff for their knowledge, excellent service and ease of changing insurance companies. I received better service and coverage for the same money.”                              Paul Schuster, Schuster Construction, Depew, NY

 

“Thank you very much for your assistance today with Ray and Mary Batt’s insurance binder. Your pleasant attitude and prompt response was very refreshing & appreciated. Mr. Batt had told me your office was very helpful in the past, and you certainly lived up to that reputation!”                             Laura Faust, Key Bank, Hamburg, NY

 

“Fast & efficient service when I was up against the wall. You really helped me get coverage when I was having a hard time with my old company – thank you!”                           ………………………………………………Jack Bedell, Tonawanda, NY

 

“Last year, Tom Larsen saved me over $2,000 in insurance premiums, while increasing my insurance coverage! Paying less and getting more works for me! Why pay more? Call Tom”

                 Nick Sidoti, National Speaker & President, WNY Real Estate Investors

 

      Do YOU want to join the list of our satisfied clients?

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