by Ben Johnson, Director of Risk Management
Insurance, like many other areas of business, is largely impacted by relationships. Your insurance agent’s comfort level with your specific professional services can have a direct impact on insurance quotes. If they can’t help the underwriter understand your industry, it can affect the premiums and may even cause an underwriter to decline offering terms at all.
It is important to use an insurance agent who understands your business and can communicate your needs clearly to the insurance carriers. It is also critical to use an agent who works with multiple insurance companies to give you options and keep you apprised of coverage changes that can impact your bottom line.
E&O renewals are approaching for many collectors and debt buyers, so this is a great time to examine your coverage. Have you compared pricing to find out if you are paying a fair market rate for your coverage? Have you taken a look at the policy exclusions to understand what types of claims are not covered under your policy?
We frequently receive calls from collection agency owners at renewal time, after they have learned that their premium is increasing or that the coverage is not being renewed at all due to claims. This situation can put you in a bind if your agent is not well-prepared to market the account to multiple insurers. But there is more to the equation than simply being able to shop around - the insurance agent should also be able to explain the coverage differences in regards to coverage for debtor claims filed under the FDCPA, FCRA and TCPA.
It is easy for an insurance agent to service your account when things are going well. You want to be certain you have partnered with a provider who can also take care of you when the going gets rough.
Cornerstone Support is the premier provider of insurance and licensing services for the collections industry. Please contact us at info@cornerstonesupport.com or (770) 587-4595 and let us know how we can help.
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