As an insurance professional for more than 25 years, It never ceases to amaze me how commoditized the professional liability insurance marketplace has become. The coverage is not that simple but yet many professionals purchase the policy on line directly from the carrier without the assistance of a broker. No consideration is given to policy form, prior acts coverage, limits, deductible or the many ancillary coverages available. No value is given to the broker services. I don’t understand this as brokers provide valuable services: policy comparisons, concise explanations, proposal/carrier options and risk management services.
As an insurance agent and the owner of a small business, I understand and can relate to cost cutting measures and getting the best “deal” possible. I have seen clients change carriers/programs/brokers for a $50 savings of annual premium and little or no regard to the coverage or broker services lost! Does that make sense to you?
I don’t believe that the purchase of insurance, especially one that protects a professional’s reputation can be all about the money. Don’t get me wrong, the money issue is very important however neglecting the coverage issue and broker services can be devastating at claim time.