Because I have received so many demands for practical information on the insurance industry, I have recently written “The Savvy Business Person’s Guide to Insurance Practices and Applications”.

While this guide includes information on all forms of insurance, it is presented in an easy to understand context, not only explaining the background behind the coverage lines sold but useful

information which will ascertain a sound practical knowledge. This knowledge will assist you so that you may be assured the coverage provided by your insurance agent is the coverage that you may require.

By reviewing this publication, you will know when you may require additional assistance from your attorney or your CPA.  Likewise, you will have the background you need to be able to assist yourself with problems which occur on an every day basis and plan for a solution.

Similar to other vocations, most individuals today, stay within their specialized field, for good reason.  To leave a specialization without sufficient background, may involve one in a lawsuit. And, most insureds trust their agents solely to provide the best advice possible. Unfortunately, there are times when misinformation is provided which falls to the detriment of a business.

Further many enter the insurance industry but do not have practical experience which may only be provided on a college level, but is not in most cases.

There is one example which is not included in my book which I feel is necessary to share.  A manufacturer in the West suffered a 100 year flood loss which damaged all of the manufacturer’s equipment.   The manufacturer contacted his insurance agent to report the loss.   The insurance agent in turn, declined the loss stating the manufacturer would have had to be covered for flood insurance through the National Flood Insurance program. 

If the manufacturer had not been offered flood insurance by the insurance agent, it may have been able to take suit against the agent for not offering such coverage, dependent upon the situation.  However, as a result of the agent’s declination (Not the insurer’s) the manufacturer did not receive payment for the loss it occurred.

The manufacturer was unable to provide his customers with the component parts and as a result, a competitor reaped the benefits by incorporating all of the manufacturer’s business clients as well as hiring key employees.  The manufacture had to secure loans and attempt to re- build his business.

Two years later after the manufacturer was facing bankruptcy, an attorney reviewed the insuring agreements by Company X.  Although the company no longer provides such broad language as to include flood losses, at the time of the 100 year flood loss, flood coverage was included.  And, because the agent had declined the loss, without reporting it to Company X, all business loss sustained, outside of the property losses covered by Company X, were paid in an award under the Agent’s Errors and Omissions insurance.

With the I-don’t-know, I-don’t-care, just- handle-it-for-me scenario, you may have allowed yourself to become a victim of questionable insurance practices.  You advised your agent you would rather not be bothered with an explanation of your insurance products.   After all, the insurance agent in front of you is supposed to be a professional with integrity, and you should be able to depend upon him or her.  So... that compels the question, how many persons would you trust with your livelihood?