Working with tech businesses over the past several years, we’ve been able to develop a sense for their primary insurance concerns. Below summarizes the main points and offers some insight:
- Affordable premiums – First on the list for a reason…this is always a key question for the insurance purchaser. What’s the cost? As far as determining the rate, a myriad of factors are considered, and especially for a tech company that might have had a loss or offers different types of tech services, it’s not a simple thing. The best advice I can give a tech business for keeping a low premium, relates to controlling risk. Think through every aspect of business operation, hiring protocol, safety training, facility maintenance, and ask yourself, “Would this cause the insurance company to be nervous?” If the honest answer is ‘yes’, consider how you can make improvements. As the agent, where we help is regarding relationships with insurance companies. It’s important that your agent 1) has a strong knowledge of the insurance marketplace [major players, which markets are performing well] and 2) strong relationships with those markets (If they don’t trust you, you won’t get favorable pricing/coverages).
- Certificate requests – Prompt and accurate delivery (including endorsement forms) – Certificates and verifying coverage is essential for tech companies to do work with their clients. It’s pertinent for an agent to respond quickly to those requests, since the contract often depends on these certs. In recent years, businesses have started requiring, as evidence of coverage, specific endorsement forms within the policies and even highlighted wording. This kind of detailed analysis is time-consuming and tedious, so make sure you have an agent who’s up to the task of accurately handling these kinds of requests.
- Assistance on audits – An insurance audit can be intimidating. The insurance company sends an auditor to review sales figures, payroll, contracts and many other items. If you don’t have all your items in order or if you accidentally show incorrect information, the insurance company can apply an additional premium or reclassify your risk in a less favorable class code. Needless to say, it’s important to have a smooth audit. Surprisingly, many agents do not accompany their insured during the audit process. When you’re working with someone who’s professionally experienced in this arena, wouldn’t you want that person present?