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Click Here If You Are An Insurance Agent Or Financial Advisor
Prioritizing Your Insurance Program
You have been an excellent example and an inspiration to me. Believe me, no one can touch you. You are on top. Thank you for your support.
Warren Brown, Individual |
Good risk management is achieved by organizing and planning. A lifetime of works and dreams can be lost in just a few minutes if your insurance program does not include certain elements. To be sure you are covered, you should take the following action:
Step One
Recognize the risks
The first step toward good protection is to recognize the various ways that you can suffer loss, and make up your mind to do something about them. Wishful thinking or an "It can't happen to me" attitude won't lessen or remove the possibility that a misfortune could strike your business.
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Step Two
Study Insurance Costs
Before purchasing insurance follow these guidelines:
- Decide what perils to insure against, and how much loss you might suffer from each
- Cover your largest potential for loss first
- Use as high a deductible as you can afford
- Avoid duplicating your insurance
- Buy in as large a unit as possible.
Packaged policies are often designed with small businesses in mind, and often they are the best way to get adequate protection.
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Review your insurance program periodically To make sure you still have adequate coverage and that your premiums are as low as possible but still consistent with sound protection.
Step Three
Have A Plan
Organize your insurance management program to ensure that you're getting good coverage at the lowest possible cost. The following are some guidelines to consider.
- Write down a concise statement of what you expect your insurance program to do for your company.
- If an employee or partner is responsible for your insurance program, be sure he or she understands the responsibility.
- Do every thing possible to prevent or reduce losses.
- Don't withhold important information from your insurance agent about your business and its exposure to loss.
- Don't try so save money by under insuring. If the possibility of loss is small the premium will also be small.
- Maintain complete records of all your insurance policies, premiums paid, losses and loss recoveries. This information may help you get better coverage at a lower cost in the future.
- Have your property appraised periodically by independent appraisers. With this information, you will be better able to prove what your actual losses are if they should occur.
Step Four
Get Professional Advice
Insurance is a complex, detailed subject that like many businesses is changing all the time. A professional qualified agent, broker or consultant can explain the options, recommend the right coverage, and help you avoid financial loss. Just having the wrong classification for your company or employees could cost you thousands of dollars in premiums
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