Sometimes Cheaper is Better, And Sometimes It Is Not....

Last week found me extremely busy with clients and I neglected my post for the week. This is something that I shouldn't have allowed to happen. What did I have on the go? I am extremely proud of the fact that my team and I managed to put together better insurance coverages and premiums for a courier company. After waiting on their current provider to come through, they came to me with only 3 days left until their renewal. We quickly analyzed their current situation and negotiated with one of their past insurers to take the account back. As they represented a large account to their old insurer, the company was eager to regain their business and we were able to negotiate favourable terms for their new insurance policy. My new client was extremely pleased both with the reduction in premium and the increase in coverage. That we put it all together in a few days was an added bonus.

Success in the courier realm lead to a referral back into the contractor realm. We are now focusing our attention on helping a client who manufactures and installs eavestroughs on site. Their business model is really impressive and it is amazing to see their trucks in action. The issue forseen in this case is they are grossly underinsured on their Commercial General Liability policy. After examining their current coverage we have found that they do not have business interruption insurance. This piece of coverage essentially protects the lost revenue of the firm in the event of a claim. In this case most of the revenue comes from a single client, if anything occurs, fire or otherwise to damage my client's ability to deliver his services to his customer, he will likely lose them for good. Protecting his income is vital to his company's continued success after a claim. The issue though from his perspective is that his current policy is miles cheaper than what a new policy would cost him with adequate coverage. So the question yet to be answered is, will they buy cheaper but inferior? Or buy something that suits their requirements at a higher cost? Only time will tell...