Buying Business Insurance - Process OR Product?
I have a friend who is an art teacher who recently explained to me the difference between art teachers who are process oriented, versus those who are product oriented. A product oriented teacher will teach a class on how to make paper, for instance, and be focused on how the end product looks. A process oriented teacher will teach the same class on how to make paper, but put more emphasis on the various steps that are required to reach the end product.
In my years of selling business insurance, I realize that most insurance consumers are product oriented when they should be process oriented. Unfortunately, insurance agents do not always do a good job of informing their buyers about the insurance process.
When insuring a business, most people call an insurance agent and request a quote (the product). The insurance agent then gathers information, calls a variety of company Underwriters to discuss the account and obtain quotes based on the information they have obtained (the process) . The most important part of this process (in my humble opinion) is the gathering of information. If the agent asks a variety of questions, gives the client proper time to explain the nature of their business, and develops a good understanding of what the business does and who its suppliers and clients are, then the insurance buyer will benefit. Only if the agent has a good understanding of the business can they properly represent you to the Underwriter. It is the Underwriter who has the final say on whether or not they will provide a quote. For some lines of business, the Underwriters also have some pricing flexibility so if the agent has done their job well, the client may also get better pricing.
If you call an Insurance Agent and ask for a quote and the only question they ask you is “How much insurance do you need?” then it is time to find a new Agent. Look for someone who is truly interested in what you are doing and seeks to understand all aspects of your business. It is only then that they can advise you properly on the coverages you may need and represent you in the most positive light to the company Underwriters. It is also important that you, the insurance buyer, remain open to the process by offering as much information as possible and creating a partnership with your agent which will result in the best end product.
If you are interested in reviewing your current insurance coverages to ensure that you do not have any gap's in coverage, or are interested in obtaining a quote from someone who is going to listen to what YOUR business insurance needs are, please reach out to me today! I can be reached via email at srichardson@clark-mortenson.com or via telephone at 877-352-2121.
