Let me ask you a couple questions; Do you ever intend to retire? How about sell your business?
If those questions aren’t applicable at this point of your career, how about this; Have you ever switched insurance carriers? Or the big question, have you ever had to file an insurance claim for your business?
In any of these scenarios, understanding the type of insurance policy you have is critical.
One of the most important (but often glossed over) issues with insurance is the difference between Claims-Made and Occurrence form policies. Heck, even many insurance agents don’t know the difference! We believe that knowledge is power, and in this situation, knowledge can save you from catastrophic exposures in the future.
An Occurrence form policy works exactly as how most people think insurance should; if there was coverage at the time of the incident, you can report it to the company – even if the policy has since expired or you have changed carriers, shut down the business, etc.
Claims-Made form policies are much more restrictive in reporting claims. Under this type of policy, you must report claims while there is an active policy. The incident also must have taken place on or after the retroactive date listed on the policy. If you ever sell the business, you need to purchase an Extended Reporting Period in order to be able to report claims after the policy ends. Furthermore, if you ever switch carriers, you need to make sure the new carrier lists your retroactive date on the new policy.
Enough information to make your head spin, right?
Unfortunately, most insurance agents sell on price, and skip right over explaining the difference between the policies to clients. As a business owner, you need to be careful when evaluating options because most of the “low cost” insurance policies for placement agents are written on Claims-Made policy forms.
The good news is that Eaton-Provident Group doesn’t expect you to be an insurance expert. We’ll guide you through the process and help evaluate your options. Our exclusive program for senior placement agents offers the best coverage options, at rates as low as $1,500 per year.
For your free quote analysis, please visit our website: www.seniorplacementinsurance.com or call Jeff Schmidt directly at (480)941-4895.
Eaton-Provident Group, LLC
P.S. We are proud to roll out the world’s first placement agent insurance website! We are committed to your industry and your success – please take a moment to check out our whiteboard video to learn more: www.seniorplacementinsurance.com