Occasionally we are asked whether insurance coverage, rating and options are the same for each broker. If you have an auto policy, isn’t it the same at each broker? If you have a farm policy, is there any difference if we deal with one broker versus any other broker in the province? If I need insurance for a commercial building, won’t the policy be the exact same regardless of which broker I use? Let me summarize our answer to these questions with a series of illustrations that will hopefully show you how and why there is a difference between brokers and how that relates to your insurance policy.
Have you ever tried to tell a joke or story that you heard a comedian tell, only to have it fall flat, as it just didn’t come out as you remember it? This was me at my friends’ wedding, making a speech where I used some “borrowed material”, and in my mind it was going to lift the roof off the hall! It turns out that my attempt to be a comedian for a day, fell very flat and became the worst memory of the day for many in attendance. While the material I was using was the same, the way it was presented was not at all comparable to the comedian’s expertise.
I have also attempted to use tools to build my own furniture. These are similar tools and materials that a carpenter would use to make a stunning creation. While the carpenter ends up with a piece of furniture, I end up with something resembling furniture, that eventually ends up being very expensive firewood. While we both had the same materials and tools at our disposal, the end result was very different.
To prove my point a third time, have you ever attempted to drive a race car? I haven’t, but I have raced go-karts and at the end of each race there are always a few drivers who consistently end up with the slowest car in the group. The excuses that these drivers come up with are a wonderfully creative list. Alternately, when the leaders are revealed at the end of the race, there are always a few that consistently finish at the top, regardless of the position they started or the kart they were driving. Those with skill consistently overcome the obstacles to produce the results they are trying to achieve.
While there is a myth, some might even call it a conspiracy theory, that all insurance coverage is the same, regardless of who and how it is negotiated, I would challenge this thought. Let me use another example to further my point. Picture a grain farm that takes loss prevention very seriously. They maintain all of their machinery meticulously. They disconnect batteries prior to winter storage to prevent issues from happening. They have a well-kept yard and a fire resistive building to store their machinery in. They complete daily walk around and maintenance, even during their busy season. Another farm doesn’t do any of the above, doesn’t maintain their machinery and performs maintenance reactively after equipment has broken or burned. Should both of these farms be treated with similar insurance coverage and rating?
The differentiation between brokers is understanding what separates your operation from others, and presenting this material in a way that paints the picture to accurately reflect the risk to insurers. The good brokers in our business understand how the use the tools and materials provided to them to get good results and end up with furniture rather than firewood. We encourage you to work with a broker that, regardless of the go-kart they are provided, consistently gets good results and ends up on the winner’s platform at the end of the race.
Is insurance simple? Do you have questions? Work with someone who will explain the differences and options to you to make the best decisions for your operation. Rempel Insurance Brokers Ltd. is open for business and glad to assist you with your insurance needs.
David Schmidt is an Account Executive at Rempel Insurance Brokers in Morris, MB, specializing in insuring farms and businesses across Manitoba and Saskatchewan.
Call or text (204) 746-2320 Email email@example.com Web www.rempelinsurance.com