This week’s tip comes courtesy of Eric Evans, Farmers Insurance.
Insurance can be a tricky, overwhelming animal, especially when you don’t know what to look for. Some brokers will cut coverage corners in order to sell what is perceived as a good deal only to sell policies which fall far short during a time of need. This client is an auto repair shop. While they were paying what was perceived as a “good deal”, their policy DID NOT cover; theft (tools $$$), replacement cost (depreciated value of property only), and only $8,000 in business income in the event of a business crisis. In addition, when test driving a car, the business’ liability was only $15,000. So, their good deal was really vapor when coverages came into play. While the Farmers policy did not save them any money (it was basically the same), they now had a policy that covered theft, replacement cost, actual business income (no limit), and $500k in test driving liability.
So, my tip to all who read this is… Price is not always an indicator of a good deal. In other words, “if you buy for price, you pay for it twice”.