Transitioning from an Ineffective Insurance Agency
Hey everyone, I’d like to share my experience, which has been pretty frustrating. I’m a 25-year-old guy who recently returned home to take charge of our family business after a relative was diagnosed with Alzheimer’s. We manage a block of commercial rentals, most of which are housed under one roof, along with two separate units. Altogether, we have approximately 75,000 square feet of commercial retail space.
Here’s the issue: when the landlord suffers from Alzheimer’s, crucial tasks—like maintaining insurance on our main building, which spans 65,000 square feet—often fall through the cracks. I approached our long-time insurance agency, the one we rely on for all our needs, but after two months of back and forth, they insisted that I had coverage on all properties. Unfortunately, I didn’t have this in writing, and they were unable to provide any bills or policy declarations.
It took a face-to-face meeting with the agent, which required a drive to their office an hour away, for her to finally understand the layout of our property. After showing her a map, she realized that while the disconnected units were covered, the main building and parking lot had no insurance protection. Shockingly, she had never even audited the property!
After much back and forth, she promised to add the main units to our policy. However, today I received an email just before her departure stating that Auto-Owners Insurance could not cover us due to the presence of two restaurants on the property. (I know from my girlfriend, who worked at another agency, that Auto-Owners does offer coverage for restaurants in our area.) It feels like I’m stuck in a situation where the agent simply doesn’t want to rewrite the policy.
Given that all my family’s insurance, including personal coverages, is with this agency and Auto-Owners, it’s become clear that I need to find a more competent insurer. My only prior experience with insurance is limited to renters and auto coverage, so I’m feeling quite overwhelmed about how to proceed and what changes to make. If anyone has advice or guidance, I would greatly appreciate it!
It sounds like you’re dealing with a really frustrating situation, especially given the importance of having proper insurance coverage for your family’s business. Here are some steps you can take to help you transition to a new agency and ensure you have the coverage you need:
Research New Agencies: Look for insurance agencies in your area that have experience with commercial properties, especially those that handle mixed-use spaces with restaurants. You can check online reviews, ask for recommendations from other local business owners, or consult local business associations.
Ask for Proposals: Once you’ve identified a few potential agencies, reach out to them for quotes. Provide them with as much information as you can about your properties, including square footage, types of businesses, and any previous policies you had. This will help them give you an accurate proposal.
Clarify Coverage Needs: Make a list of all the coverage you need, including general liability, property insurance, and any specific policies related to the restaurants (like liquor liability, if applicable). Be clear about the importance of covering the entire property, including the main building and any disconnected units.
Review Policies Thoroughly: When you receive policy proposals, take the time to review each one carefully. Look for key elements such as coverage limits, deductibles, exclusions, and endorsements. Don’t hesitate to ask questions if anything seems unclear.
Consult with the New Agent: Once you select a new agency, work closely with your new agent to ensure everything is in order before canceling your old policy. Your new agent can guide you through the process and help you ensure that there’s no gap in coverage.
Document Everything: Keep a record of all communications with your old and new agencies. This includes emails, documents, and notes from phone calls. This documentation can be invaluable if any issues arise during the transition.
Consider Additional Coverage: Depending on your property and business needs, you may want to look into additional coverages like business interruption insurance, cyber liability, or equipment breakdown insurance.
Stay Informed: Since you’re new to managing these properties and navigating insurance, it might be beneficial to educate yourself about commercial property insurance. There are many online resources and forums where you can learn more.
Network with Other Property Owners: Connecting with other property owners or business landlords can provide insights and recommendations about agents or insurance products that have worked for them.
Transitioning to a new insurance agency can be daunting, but taking these steps can help you secure the right coverage for your family’s business. Good luck, and remember that thorough research and clear communication with your new agent will be key to finding a solution that works for you.