Sez me!
The insurance industry has taken many hits in the last few years with the unraveling of the Affordable Care Act or some on the streets would refer to as Obamacare. The arguments for and against, the ruling from the Supreme Court. Some states refusing to create the federally mandated health insurance exchanges. Texas and Arizona to name all of two of them and many others that refused to permit the federal government from forcing them to set up Health exchanges. The misleading "adverse selection" of underwriting which in theory is supposed to drive cost down not up. Dragging the main street Insurance broker through the mud from a public relations stand point. Who do you trust? Why should you trust your local insurance broker? Insurance seems too archiac.
Too much heat and not enough to push back. Grrrr!...Pause for a moment and realize something. Insurance will always be a used upon risk management method and has been for over 150 years even longer. My reason for this blog is I've perceived the general business community to be very knowlegable and very understand of regulations, public policy and contracts business people know their is a specialist for everything. Business people are sharp, probably the sharpest
It's my "assumption" that Insurance has a bad name for times of NOT paying out on claims or not fighting them. Can this be true? Is it just another layer of cost to do business?
The title for todays blog is Tech Start ups: Don't wait for a loss to act, its too late! This is in reference to losses or claims that can occur while your building your business. I've come accross several clients that can make the statement as obtuse as " Well insurance never pays anyway" or " It doesnt matter they arent going to pay". While I'm open to special type situations, I would beg to differ if that is truly the case.
To Help my fellow Tech Start up friends and colleagues embrace this aspect of there business that is truly essential let me give you some key pointers when dealing with your broker or agent.
1. Insurance is broad and brokers have mophed over the years to specialize in an industry classes or specific practices . For example; I'm a Comercial Insurance broker that has an expertise in Construction, Tech Start ups, and Industrial-Environmental acccounts. My specific focus is workers compensation, directors and officers, liability, and pollution. did I lose you? Seek a broker that focuses on Tech Start ups
2. Don't have any preconceived notions the "Gekko" and J.K Simmons aren't your underwriters, they have assigned Tech Specialist underwriter who spend their time addressing the risk factors of a Tech Start up company. Bascially they are more knowledgable about your business than you...I can make a bet on that.
3. Allow for your broker to educate you on the risk and exposues of your company. A lot of times owners are afraid because they think it's one more policy they have to buy. Not always remember Insurance is a risk management method. You need to have the talk so you can plan for contingencies. If a policy is fiscally the appropriate method then thats your choice
4. Utilize your broker for resources that address better safety methods, egonomics, human resources. A good broker( John A. borja) Will have these useful tools/information handy and will gladly have their safety and loss control person come and see you. Just FYI Tech Start-ups, Egonomics and soft tissue claims can really effect the cost of your insurance. Even if your labor force is under 25 years of age.
5. When bad news comes, talk about it and work together on a solution. In business nothing goes as we thought it up on the chalk board. Things will go sideways and a good broker will attend to your needs. Claims are fact of insurance life thats why you have the insurance, but it's important to know your broker.
Thank you for reading my blog, if you wish to learn more about Insurance as it relates to your business you can reach me on twitter, linkedin, facebook, or email.
