Taking the Confusion out of Insurance – Part 1

“Am I doing this right?”

“I don’t have time for this.”

“I hate dealing with insurance!”

Business owners have enough to manage without worrying about their insurance. CMB understands that buying insurance for your company can be complicated, costly and confusing. We aim to simplify your insurance experience.

We hope our insight into a sometimes confusing industry empowers you to make the best choices for your company’s success.

How insurance works (& why you should care)

First, why do you need to know how insurance works? By understanding what’s important to insurers, you can make sure your company looks like a good risk for insurers. If your business looks attractive to insurers, it can mean better premiums, coverage with no surprises, and more peace of mind.
Fortunately, we understand what insurers are looking for and can help make your insurance experience simple, controllable and predictable. Our goal is to protect the business you’ve worked hard to grow.

What you need to know

Business insurance protects your company when it suffers a loss in the normal course of business. A business insurance policy is a contract between your company and an insurance provider, where a business pays for financial protection from various kinds of losses. This can include damage to property, interruptions to business that cause lost income, liability resulting from causing loss or injury to a third party, and more.

What to consider (besides price)

You want the best deal and CMB is focused on finding it for you. Price is only one part of choosing the right insurance. The cheapest policy isn’t as good as the right policy if your business faces a serious claim.

A. Choose a dependable insurer

Choosing an insurance company can be daunting. There are almost 200 insurers competing in Canada. If you’re looking for an insurance company that covers medium-to-large businesses, and has a good credit ratings from a trusted rating agency, the pool is smaller.

Your insurer should tick these boxes:

• They understand your field and your needs
• They’re near your location so service is timely, local and specific.
• They have a track record of paying claims promptly.
• They communicate clearly and in a way that works for you.

CMB does all this, and more. We’re headquartered in Edmonton with offices in Calgary, Red Deer, and Grande Prairie as well as Los Angeles and San Diego, California. We have 35+ years experience and have an almost 95% client retention rate. We keep things simple and practical, and we’re easy to deal with.

B. Understand the fine print

Not all policies are the same, nor should they be. Understanding the details of your policy is key to knowing if you have the coverage you need. Will your policy cover the business you do internationally? Is your price higher because there’s extra coverage where you don’t need it? Does your brokerage understand the specific risks of your industry and company?

CMB understands the details of your policy and provides clear, uncomplicated answers to your questions. We get to know you and your needs, and we understand how to make sure your policy meets those needs, so there are no surprises when it’s time to make a claim.

C. Know your advisor

You’re the expert on your business. An insurance advisor knows insurance—but also needs a good understanding of your industry and needs. When choosing an advisor, ask:

• Can you have a candid, clear conversation with your advisor?
• Do they understand the basics of your business and its risks?
• Do they work with insurers that match your company’s needs?
• Do they have other clients like you? This helps ensure they know your industry and work with insurers that suit your needs.
• Do they put your interests first?
• How are they accountable to you? What’s in place to ensure they do what they say and deliver what you expect?
• Has the advisor been with the insurance company for long?
• Once they have your business, what’s the plan for future communications? Can you count on them to check in when it makes sense to you?
• How are they compensated? If your advisor is paid for signing up your company with no incentive to ensure good service going forward, it can be a red flag. A good advisor should be willing to disclose how they’re compensated, so you know they really are putting your company’s interests first.

CMB advisors take the time to know your business so they can provide the good advice you need. We select team members with knowledge of your segment of the industry, and pride ourselves on being accessible, reliable and prompt. We get it—you have a business to run. We’re here to make it easier.

Putting competition to work for you

Competition is good, right? So why not approach multiple advisors to quote your business? This actually creates competition at the wrong level.

It’s worthwhile to create competition among insurers to make sure your business gets better terms or pricing. But this competitive process can be managed by a single advisor who understands how to leverage multiple insurers against one another to get the best terms and pricing.

CMB team members understand how to find competitive pricing and terms that align with your needs—especially since we get to know you and your business. When you trust us to work for you, we take it seriously. We draw on decades of industry experience and connections to search for what is best for you.

It’s also worth knowing that the insurance business is set up so that an insurance company can only work with one advisor at a time on a particular policy. If an insurer has already started working with one advisor, they will reject other advisors that approach them regarding that policy. This is called “blocking the market”, and it means there’s no benefit to using multiple advisors. The only exception is if one has access to markets or products that the other does not.

A conversation is a good place to start. At CMB, we’re ready to listen, and get you the prompt answers and good advice you’re looking for. We know you don’t have a lot of time so we listen, and we deliver the solutions you need.

What about price?

Of course price is important—and we’ll talk more about it in part 2. But focusing only on price may cost you money in the long run. With so much weighing on having the right insurance, our experience tells us that it’s important to consider these other crucial factors first—and then we’ll find you best-in-class pricing.

Insurance is complicated. It can feel like it’s out of your control. It’s good to have an ally in your corner working for you. We make insurance easier to understand and have dedicated our business to making the insurance experience simple, controllable and predictable. Give CMB the opportunity to make insurance easier and better for your business.

For more information check out our complete guide to insurance for CFO’s here, call CMB at 780.424.2727 or click here to get a quote.