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Nathaniel Fick
Nathaniel Fick
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Insurance: Presume Nothing

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Insurance plays a very important role for business owners and private citizens alike. Whether a person is looking to protect their home, car, business, health, or life; insurance typically offers an affordable way to safeguard investments and livelihoods. Few people, however, want to spend an exorbitant amount of money on any type of insurance. Insurance commercials on television regularly advertise their lower rates compared to their competitors, and cost is frequently a reason cited by customers for why they are switching their insurance provider. Unfortunately, cost is far from being the only factor that customers should consider before buying an insurance policy.

When Cheap Coverage is Not Worth The Cost

Since 2013, a popular Maryland insurance company, Indemnity Insurance Corp, has faced enormous legal troubles. Although the company was once involved in insuring a variety of nightclubs, taverns, and similar places of entertainment, Indemnity Insurance Corp. now faces possible liquidation to atone for their financial situation brought on by illicit practices. This has placed their customers in a precarious position. Although they may have faithfully paid their premiums and kept their coverage up to date, businesses that are now trying to use their insurance policies are being left in a limbo.

The difficulty facing those attempting to find a replacement policy is perhaps one of the most important lessons to be gained by those following this case. The policies the businesses are looking at do not offer nearly the same amount of coverage for the amount of money. The prices offered by Indemnity Insurance Corp. were clearly below the industry standard. These low prices were undoubtedly popular with customers, but now that the company has begun to face accusations of fraud, the cheap coverage is worth nothing.

What To Look For

When searching for an insurance company, customers should be exceedingly careful. Do not get persuaded to buy a policy based upon a nice sales rep, exceptionally low cost, or great promises. Companies should be thoroughly investigated. This includes checking to see if they have had any complaints filed against them for denying payouts or mismanaging funds, how past and current customers rate the company, check for the company in the news, and look for any information about internal company politics that could indicate instability. Resources such as thestreet.com are fantastic for verifying important company financial information.

Finding a good insurance policy requires much more than just finding a good price. It means finding a reputable company that will protect a person’s assets and investments with the diligence that any customer would expect.

1 Comment

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  1. James says:
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    I agree with you that cheap insurance is never worth it. Also, you have to really ask yourself the question – If you can’t afford insurance, how are you ever going to afford a deductible?