As an insurance agent who has worked with trucking companies for several years, I have seen countless horror stories that reaffirm over and over again my belief that the right insurance agency is infinitely more important to a business owner than the perceived “right” insurance carrier.
Most recently, came a story I heard while meeting with the owner of a large trucking firm who was looking to change insurance agencies. His former agency had been collecting his premiums but, unbeknownst to him, was not in turn paying the insurance carrier. As a result, he received a surprise cancellation notice in the mail for “Non-Pay” and the carrier refused to reinstate. He subsequently had to shut down his business until he could get a new insurance policy in place (needless to say, a lawsuit is currently in progress between the insured and his former agency).
When I asked him how many other insurance agents he was bringing in for his new quote he told me that I was one of five.
Instantly, it all made sense.
Too many times I see business owners using this very strategy. They bring in four to five different agencies to get quotes from with the idea that more agencies equals the better chance one has of receiving a better quote.
It’s hard to blame them, especially when said agencies are quick to promise the best carrier, the best price, the best service, and everything else under the sun. Just one problem: often times business owners that do this, rarely vet the insurance agencies that are promising them so much. When they don’t, business owners are far more susceptible to run into problems like the very one the person I was meeting with was currently experiencing.
I asked him if he either had a prior relationship with or was referred to the other agencies he was going to get a quote from. His answer was no. Because of the mess he had just gone through I was baffled. It was a classic example of a business owner focusing solely on the numbers, rather than looking at the numbers as an important element of all the services an agency provides.
Being one of five insurance agents he was bringing in, many other agents in my position would have shook his hand, wished him luck, and been on their way. For large trucking firms like his, only a limited number of markets would be willing to insure his particular business and the first couple of agencies he went to more than likely would have had those locked up.
But instead, I took a moment to offer him my best advice for buying insurance:
- Interview 3-4 different agencies, and have each of them present their qualifications, experience, and resources.
- After considering all presentations, cut the list down to just two and ask each agency to provide a list of carriers that they think would be best for your business.
- Assign markets to each agency.
Using this strategy would still ensure that he received a competitive quote, while also making sure that the quotes he received came from quality insurance agencies he would have personally vetted. The business owner decided to take my advice and start the process over. After hearing all presentations he narrowed it down to Connor & Gallagher and one other agency. Four months later he can’t help but compliment me on the stark difference between us and his past agencies.
“You guys are great,” he jokes, “for one you actually pay the insurance company the money I send you.” A reference to his dispute with his prior broker (a situation that has still yet to be completely settled after he filed a lawsuit).
I’m happy to say this is not the only thing about Connor & Gallagher that he has paid us compliments on. In our presentation, we offered him a competitive, financially strong carrier along with prompt, efficient service and we haven’t let him down yet.
Now obviously, I am fortunate that he decided to trust me with protecting his business, and I couldn’t be happier having him as a client. But the lesson is this: business owners should think of their insurance agent in the same light that they think of their lawyer or accountant.
A malicious act or an incompetent mistake by your insurance agent can cause drastic consequences to a business in the same way a shoddy lawyer or a dishonest accountant can. It’s important to vet each insurance agency thoroughly, and take control of the quoting process.
In the end, your business with be better off for it. Otherwise you may end up with a subpar agent locking up a good market that a better agency would have been able to represent.
For more Trucking Insurance tips or questions please contact info@GoCGO.com.
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Truck Insurance: What Happens When a Tractor Gets Stolen, Trucking Companies That Also Broker Freight: The Need For Contingent Cargo Coverage,
