Friday, January 7, 2011

Restaurants and the Soft Insurance Market

As you may or may not know, the property and liability insurance industry has been in the longest soft market cycle in 70 years. What that means to you is that insurance rates, and therefore premiums, have been steadily declining for six years. As a buyer of insurance this has been good for you due to the lower cost, especially in an economy like we have been experiencing for the past few years.

The negative is that businesses and individuals have now been conditioned to buy on price and not on value. Every insurance company that advertises touts how they can save you money over your current insurance company. While saving money is good (I like to do it myself), there are many cases where buying on price can leave you unprotected when you need that insurance protection most.

Many insurance analysts are predicting that the prolonged soft market will begin to harden in 2011. That means that you will see rates begin to increase. So now is the time to rethink your current insurance and determine what value you are really getting from your insurance company and your insurance agent.

Most insurance agents will tell you that they want to be a partner to your business. What that usually means is that they want you to buy the insurance that they recommend and that’s it. A true business partner is going to be an insurance agent who will not only analyze your coverage, but will also analyze your risk and will work with you to gain a true understanding of your business. They will work to help educate you on risk management techniques and help you to understand what types of coverage you need and the best way to obtain it. After that the agents job is to make sure first and foremost that they design an insurance program that offers the best coverage and then works to get that coverage for the best possible price.

At our agency we take that value a few steps further. We actively work to promote and market your business in an effort to help drive customers to your door. We call this our Partners Program. Utilizing social media such as Facebook and Twitter, email campaigns to our data base and back links from our website to our clients websites, we have been able to help our clients on a level that goes far beyond the typical role of an insurance agent.

If you have been sold insurance based primarily on price, now is a good time to get a second opinion. A claim is not when you want to find out that all you bought was price.

Penny Insurance Agency has been providing insurance to businesses and individuals in the Carolinas for 80 years.