As a business owner, you make hundreds of important decisions every year. One of the most important deals with your insurance coverage and which policy will best fit your current business needs. This decision could have a negative effect on your dealership if the carrier you choose has limited coverages and services available specifically for equipment dealers.
Ask yourself why you buy business insurance. Is it for peace of mind, a necessary part of doing business, because state laws require it, for protection from lawsuits or disasters, or something else? Whatever the combination of reasons, it is important to note that not all insurance policies are created equal. When you’re researching insurance providers, you will want to examine the coverages and services they offer.
Insurance provider considerations
First, it is essential to do business with an insurance carrier that specializes in equipment dealers. It’s a good idea to ask your current or any potential providers some key questions:
- How many equipment dealers do you insure nationally and in my state?
- Do you have a specialized insurance package just for equipment dealers?
- Do any equipment dealer associations endorse your company?
- What is your A.M. Best® rating?
Second, you need reassurance that important exposures are insured. You may want to ask if the carrier offers specific, unique coverages:
- Do you have precision agriculture liability coverage?
- Can you cover all of my equipment stock on one blanket limit?
- Is data compromise and cyber liability coverage available?
- Do you offer a separate policy for employment-related practices liability?
Finally, you know that a solid risk management foundation can help keep your company’s loss control programs and policies active and visible, so the value of working with a provider that can help you analyze your risk potential and suggest best practices cannot be underestimated. For example:
- Does the carrier do a personalized, annual evaluation of your dealership’s risk exposure?
- Does the carrier have risk management consultation to help with loss prevention and profitability enhancement?
- Does the carrier provide access to risk management tools and resources at no additional charge?
- Can the carrier help you connect with legitimate sources for answers to hiring and employment questions?
- Does the carrier supply information on and/or access to professional resources that can help with employee training to increase safety awareness, reduce risk, and follow best practices?
These few sample questions illustrate the complexity of a well-rounded insurance program and that not all insurance policies are created equal. Your policy’s overall worth amounts to more than just the coverages provided. Your local Federated Insurance marketing representative can help you review the protection your current policy is providing, and offer suggestions to ensure you are satisfied with your dealership’s insurance program.
This article is for general information and risk prevention only and should not be considered legal or other expert advice. This is not an offer of insurance. All products and services not available in all states. Qualified counsel should be sought with questions specific to your circumstances. ©2017 Federated Mutual Insurance Company.