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to Articles list You may be surprised “What should I expect from my insurance agent?” ByJudy A. Jacobs The trend away from personal service “What are we getting from our insurance agent?” More business insurance buyers are asking themselves this question. This isn’t just another case of wanting to get rid of the “middleman.” Businesspeople are looking carefully at their operations, particularly overhead, and they are asking questions: “What are we really getting from this relationship?” “Is there a way to make it more efficient?” There are reasons for the questions. Up until a few years ago, claims were taken care of by the local insurance agent. Today, customers are given an 800 telephone number to call if they have a claim. Yes, the local agent may follow up, but the claims are handled somewhere else. It has much of the same feeling as when you have a problem with your DVD player, laptop or toaster and take it back to the store where you bought it. You’re concerned because it’s still under warranty. You get the paperwork together and are getting ready to drop it off at the store. You’re surprised (maybe even angry) when you’re told, “Oh, that’s under the manufacturer’s warranty. You’ll have to send it back to the factory. You did keep the original shipping carton, didn’t you?” Somewhat confused, you say, “But I bought it here. Why can’t you take care of it?” It seems as if many local insurance agencies are moving in the same direction. They sell insurance but they provide minimal service. Whether it’s taking care of a claim or answering a question, everything goes to a call center, voice mail or an answering machine. Is it any wonder that insurance buyers are asking what the local insurance agent is doing for them? Ask the right questions and analyze the answers Often times, it takes a claim for the lack of personalized, local service to become obvious. You find yourself calling 800 phone numbers and talking to people you don’t know. There’s a way to solve this problem. And that’s to ask the right questions. Here are a few to get started: • Does your insurance agent understand your business? There’s a difference between knowing the business you’re in and knowing your business. Does your agent have a good working knowledge of how your company operates, its priorities, the problems it faces, and its future needs? • Is there an annual review of my business? The only way to make certain that business assets are properly protected is for the agent to perform a thorough review of the business at least once a year. How can an insurance agent work to get you the most coverage for the best possible price without having all this information? • Is there an annual risk assessment of my business? There’s one major way to lower insurance costs: reduce risk. Does your insurance agent go through your business to identify risk issues and then make recommendations for eliminating them? If someone from an insurance company performs this assessment, is your insurance agent there with the company representative? • Do you have an insurance “program” or just policies? Do you feel that you have an integrated insurance program for your business? Are you ever surprised when you have a claim and are told that the loss is not covered? This can indicate that you have a policy, not a program. • Do you see your insurance agent as a salesperson or a trusted advisor? When your agent makes an insurance recommendation, is there any question in your mind as to the agent’s motivation? Is it to sell more insurance to is it to better protect your business assets? • Is there an annual Workers’ Compensation experience modification check-up? Depending on the type of business, workers’ comp can be costly, particularly if mistakes are being made and no one is catching them. Because this particular coverage involves so many variables, a thorough annual review is essential. • Are company contracts and agreements reviewed annually? You may wonder why it’s important to have your leases and contracts reviewed. The problems, as usual, are in the fine print. You may be expected to provide coverage. If your insurance agent is not aware of this requirement, you may be liable for the loss. • Is there 24/7 local response? More businesses require 24/7 response time from an insurance agent. Answering machines don’t do it. Often times, the next day or Monday morning won’t do, either. You want immediate, local help, not an 800 number that’s answered far away. • Are you told someone will get back to you when you ask a question? More often than not, this is an indication that the person handling your account is inexperienced and will go to someone else to get the answer to your question. • Are you satisfied with the insurance markets your agent has available? Like most other business insurance buyers, you may not have thought about this issue. Why would you? You assume that your agent has the exact insurance resources you need. In the past, this may have been true. It’s not necessarily so now. Many local insurance agencies represent far fewer insurance companies because the companies expect a certain volume of business. If they don’t get it, the agent is out. It’s important to you that your insurance agent has the right markets to obtain your coverage. In other words, you need the right fit to get the right coverage at the right price. Check to see if your agent has available a full range of financially sound insurance markets. These questions are important because they can help you assess whether an insurance agent has the capabilities and resources to handle your account properly. We all recognize that we can do business at a distance just fine today. We are surprised how easy and efficient it can be many times. Yet, when it comes to protecting assets, in-depth knowledge and first-hand experience are essential to give a business the protection it needs. Judy Jacobs is sales manager for Mosinee Insurance Agency, Mosinee, WI. She has worked in the insurance industry for 24 years. She can be contacted at judyj@mosineeins.com or 715-693-2100. Back to Articles list |
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