Insurance Companies – What Is The Difference?

7th January 2010

There are so many different kinds of insurance companies that it is amazing that anyone can tell the difference. The definition states that to be one of these types of companies you must be a financial institution that sells coverage policies. It can be a bit confusing when trying to decide which company can offer your business the best coverage at the right price.

When looking for a company to provide coverage you will need to either find an agency or a brokerage. The difference is that usually agencies have agents which work dependently for the parent company while brokerages have brokers who work independently for the buyer. It would seem that by that definition a brokerage would be the way to go but with all of the competition out there the pricing for policies is very similar with any company you choose. 

After your business has chosen the type of company to acquire coverage from your business should contact several of those insurance companies and request quotes. These quotes will vary in coverage and premium pricing. Some will specialise in certain areas while others provide a broad range of coverage.

The decision should be based on what the needs of your business are. When planning an event it is wise to look for a coverage provider that can offer the most coverage at the best price. However price should not be the deciding factor because your business should also look for a company that is reliable, honest, and efficient. No matter how cheap the premium is if the coverage is unreliable or the company does not complete things the way they should then your business is paying too much.

Some very important things to look at when looking at the quotes from each of the insurance companies are:

● Premiums – expenses incurred by a business in respect of different types of policies
● Limits – the extent the insured can get paid
● Each Occurrence – per claim amount
● General Aggregate – the maximum limit of coverage payable during any given annual policy period for all losses other than those arising from the products and completed operations hazards
● Products/Completed Operations Aggregate – the maximum limit over the general aggregate during any given annual policy period that is payable
● Personal and Advertising Injury – the maximum limit payable during any given annual policy period for all losses personal and advertising related
● Fire Damage Legal Liability – the maximum limit payable during any given annual policy period for all losses associated with fire damage

All of these things are important and when you are looking through the insurance companies you should know what to expect. Getting to know these terms as well as other industry specific terms that you can find on the internet or by calling a provider is the best way to understand your quotes. Next once your business has narrowed down the quotes that they like is setting up a person to person meeting with them. Getting to know your agent or broker personally can go a long way in securing a good policy and can help you trust your decision.

Trust can go a long way when determining which agent or broker is best for your business. Once you have visited the insurance companies it is time to make your choice. Your business must decide which company and policy is right for them. The only one that can decide that is you because you are the only one that knows what your exact needs are.