The average broker pulls a policy from a shelf and says “This is perfect for you!” But time and again, we meet owners of financial, analytical or consulting practices that have policies that are quite the opposite.
Here’s an example of what I mean. Recently we had five companies that were either in Mergers & Acquisitions or in Business Valuation for whom we discovered they had insurance yet they weren’t covered. These companies were based all over the country – from New York to Portland and Chicago to Phoenix. Each firm was approximately $2 million in revenues. I asked them to send us electronic versions of their current E&O policies and discovered that for several years they had all been paying for policies that did not cover one single activity of their firm! We replaced their policies with ours that has been uniquely curated for their profession. They went from having none of their practice activities covered to being completely covered and then some.
How do you know if your business has the right insurance or the right coverage? Are you sure your policy specifically cover’s your firm’s needs? Before you shrug your shoulders, really think about the answer. You can deal with a known broker from a known insurance company, this in no way means that they are specialized enough to give you a policy that covers you specifically.