Why Buy Insurance? If you’ve asked yourself this question before, you are not alone. If you’ve pressured your insurance broker, stating that you may be withdrawing your business and placing your premium dollars in a bank account to self-insure, you are not alone. If you have followed through with that and actually placed that money in a safe place rather than blowing it on a winter vacation, you may be alone.
With insurance costs rising in certain categories, along with less flexibility offered by insurers, we have entered an insurance marketplace where you may find yourself asking why do I even buy insurance?
The answer lies in the basic concept of insurance- the premiums of many pay for the losses of a few. However, over the past year or two, the premiums that many insurers are collecting are falling short of paying for the losses of the few. This is causing rates to increase and insurers less willing to be flexible or think “outside the box” when it comes to finding solutions for clients.
When the marketplace changes like it has, it is important for you to stop and rethink the why – is there risk that you are comfortable taking on yourself without the security of an insurer backing that risk? Is this a time for you to take on a larger share of the risk by increasing your deductibles to lower your premium?
There are also risks such as potential liability and business interruption claims that may be less frequent, but contain larger risk that is very difficult to self-insure and could jeopardize the long-term financial health of your operation.
I had the privilege of delivering the largest cheque I have ever seen to a client this past month, and it reinforced why I do what I do, and it also reinforced why insurance coverage is purchased. Without the backing of an insurance policy, the client would likely have had to beg their banker for a substantial investment to keep their doors open, or walk away from the operation and cut their losses. Not only are they in business today, but they are back on track to growing a successful business that should one day soon allow them to retire and enjoy winter months far away from winter.
Regardless of your situation, make sure you are working with an insurance broker who has time and capacity to negotiate coverage on your behalf, and explains your options to you. Consider making Rempel Insurance Brokers your insurance broker of choice. We work hard to make sure our clients have the resources to make educated decisions on risk.
David Schmidt is an Account Executive at Rempel Insurance Brokers in Morris, MB, specializing in insuring farms and businesses across Manitoba and Saskatchewan.
Office (204) 746-2320 Text (204) 712-6618 Email davids@rempelinsurance.com Web www.rempelinsurance.com