Our newest Producer, Matt, has been busy evangelizing the need for business owners to get a second opinion on their insurance programs. We’ve spent numerous hours going over the statistics and the approach: 43% of businesses that suffer a major loss (be it a fire or lawsuit or insert your favorite calamity here…) go out of business. And most of these had business insurance! Scary.
Think about it: Almost half of the businesses who had to actually rely on their business insurance went out of business because it didn’t do what they intended it to. Business failure. Dreams down the drain. Assets? poof! (Hopefully, most of these had some corporate veil to protect their personal assets, but experience tells me that many do not).
So is the 43% statistic valid? The short answer is yes. (This was put out by the Insurance Information Institute and generally accepted to be accurate in insurance circles).
But what about anecdotally? Matt is also getting some pretty vivid validation…
Out of the first five reviews we did of businesses he brought in, four had major gaps in coverage. Gaps that could result in unmitigated disaster. The interesting thing is that in some instances it would not have cost them any more to have the proper coverage in place! Needless to say they are happy they had us take a look.
Pay attention to the risks your business faces. Make sure your agent handles primarily business insurance and has advanced certifications. You typically only get one chance to get this right.
Feel free to get touch with us at General Liability Insurance Austin or (512)-828-4200 if you have questions or would like for us to take a look at your program.
