Switching from an Incompetent Insurance Agency
This is a bit of a lengthy situation, but I wanted to share my experience. I’m a 25-year-old male who recently returned home to manage our family business after a relative was diagnosed with Alzheimer’s. We own a block of commercial rental units, most of which are housed under one roof, along with two additional units that are separate from the main building. In total, we have approximately 75,000 square feet of commercial retail space.
The challenge arose when our landlord’s memory issues led to crucial oversights, like not ensuring there was insurance coverage for our main building, which encompasses 65,000 square feet. I reached out to the insurance agency we’ve relied on for all our commercial needs. Despite my efforts, they insisted for two months that we had coverage for all properties (though I don’t have this confirmed in writing). They were unable to provide any billing documents or declarations that listed the units covered.
It wasn’t until I tracked down the agent at their office, which is an hour away, that we made any progress. I had to show her a detailed map of the property to clarify that while the separate units were insured, the main building and its parking lot were not covered at all. It seemed she hadn’t audited the property, looked at any maps, or even visited it.
Eventually, she agreed to start the process of adding the main building to the policy. However, I received an email from her today right before she left, stating that auto-owners couldn’t provide coverage for us because we have two restaurants on the property. (Interestingly, my girlfriend worked as a receptionist at another agency that does provide commercial coverage for restaurants in our area.) Now, I find myself without insurance for a multimillion-dollar property because it appears the agent is unwilling to revise the policy.
Given that all our family’s insurance is through this agency and auto-owners, it’s clear that I need to change agencies as their service has been anything but reliable. My only prior experience with insurance is related to renters and personal auto, so I’m at a bit of a loss regarding where to begin with these changes. Any advice or guidance would be greatly appreciated!
It sounds like you’re in a tough situation, but it’s great that you’re taking charge of the family business and addressing these insurance issues head-on. Here are a few steps you can consider to help you navigate this process:
Document Everything: Start by gathering all communication you’ve had with your current insurance agency. If you have emails, notes from conversations, or any paperwork, compile it as it will be helpful for any new agency you approach.
Research Reputable Insurance Agencies: Look into commercial insurance agencies that specialize in covering properties similar to yours. You might want to ask for recommendations from local business owners, your accountant, or even a local Chamber of Commerce.
Get Multiple Quotes: Once you identify a few potential agencies, reach out to them for quotes. Make sure to clearly explain your property’s details, including the commercial units and the restaurants.
Understand Coverage Options: Ensure that you have a thorough understanding of the coverage options available, including general liability, property coverage, and any specific policies that might be required for the restaurants.
Ask About Their Experience: When interviewing potential agencies, inquire about their experience with properties of your size and type. You want to ensure they’re capable of handling your specific situation.
Involve a Broker if Needed: If you’re feeling overwhelmed, consider hiring a broker. They can help you navigate the market, understand various policies, and might even have access to better rates or coverage options.
Check References: Before finalizing with a new agency, check their references or online reviews to ensure they have a reputation for good customer service and reliability.
Be Clear About Urgency: Make sure to communicate the urgency of your situation to the new agency, emphasizing that you need immediate coverage for your property.
Evaluate Your Family’s Overall Coverage: Once you find a new agency, reconsider your family’s overall insurance needs. If the same agency can cover multiple needs (business, personal auto, etc.), it might simplify your situation.
Stay Involved: As you transition to a new agency, stay actively involved in the process to ensure all properties are adequately covered and that nothing is missed.
Making a switch can be daunting, but by taking these steps, you can ensure that you’re better protected moving forward. Good luck, and I hope you find an agency that meets your needs!