False Bottom Line

Do you have a Risk Management Consultant or an Insurance Agent?

Do you look solely for the cheapest price, or are you concerned about the coverage and service that you are paying for?  When thinking about these questions, I like to share the analogy of purchasing a new car.  You go to 2 different dealerships.  Both offer the same price and terms for identical cars.  Which one do you choose?

Dealer #1

They offer free car washes, oil changes and tune-ups for the first 3 years of the contract.  In addition, when you take your car in for service, they are awaiting your arrival, have a loaner car ready to go (at no cost), and they do it with a smile.

Dealer #2

The second dealer doesn’t offer these additional “perks” and their service is sub par when you take your car in. When you arrive for your appointment, they some how lost your paper work, the shuttle service just left and won’t be available for another hour, and their waiting room is a pit.

Again, the price at both dealerships was the same, but as you can see with this analogy, their is a false bottom line that consumers often times over look.  Is the price really the same?  Are you really getting the same deal at both dealerships?  Using this scenario, who would ever choose #2?

Insurance “Perks”

Like buying a new car, the same holds true in our industry.  When you are evaluating your risk management options, you may have 2 agencies that are offering the same price for basically the same coverage.  But, what additional “perks” are they offering?

  • Do they do the little things like answer the phone, or return your call within a reasonable time frame?
  • Do they follow up on the actions they commit to?
  • Are they on time and prepared for their meetings with you?
  • What about the “big ticket items”?
    • Are they knowledgeable in your field or do they work on a variety of different risks?
    • Do they have a thorough knowledge of the unique needs of your industry?
    • Do they take the time to learn about your business?
    • Are they familiar with and have appointments with the right carriers for your needs?


At Peak9, we pride ourselves on our customer service and are committed to focusing our practice in our respective niche industries.  If you are interested to learn more about the “perks” that we offer, give us a jingle…

Employment Practices Liability

I recently had a client (multiple unit restaurant operator) call to inform me that he is being sued for discrimination. He asked me if his insurance would cover this and sadly, I had to remind him that he opted against purchasing Employment Practices Liability Coverage.

In this case, we discussed the pros/cons of purchasing EPLI and he made the decision to save the money and roll the dice. As his risk management consultant, it was my job to educate him on the exposures he faced, but at the end of the day, it was his decision to make.  I have said this time and time again, the principal of insurance is to pay a small amount upfront to avoid having to pay a huge amount down the road. It’s that simple.

Here, I expect the merits of the case are questionable and he will eventually prove his innocence. However, what he (and many others like him) fail to consider when making their decision are the intangibles.

Ask yourself:

How much will it cost to hire an attorney to defend you and your business?

How much time will this cost you?

Think this will bring any emotional stress?

Could this added stress trickle down to your employees?

The point is…

…when making the decision whether to purchase EPLI or not, keep in mind there is more to it than just $$$$!