Transitioning From an Ineffective Insurance Agency
I’d like to share a somewhat lengthy situation I’ve found myself in. I’m a 25-year-old man who recently returned home to manage the family business after a relative was diagnosed with Alzheimer’s. We own a block of commercial units for rent, most of which are situated under one roof, along with two separate units. Altogether, we have about 75,000 square feet of commercial retail space.
A significant issue arose when the landlord, who has Alzheimer’s, forgot to maintain crucial aspects like insurance coverage for the main building—65,000 square feet of space. I approached the insurance agency we’ve relied on for all our needs—both commercial and personal. For two months, they assured me that all properties were covered (unfortunately, I didn’t get that in writing), but they couldn’t provide a bill or declarations detailing the units. It wasn’t until I confronted the agent, who works an hour away, and shared a property map that she grasped the situation: although the disconnected units had coverage, the main building and parking lot were uninsured. Shockingly, she had never audited the property or even looked at it on a map.
Eventually, she agreed to include the main units in the policy. However, today, just before her departure, she emailed me stating that it’s impossible for Auto-Owners to cover us because we have two restaurants on-site (ironically, my girlfriend previously worked at another agency that does provide commercial coverage for restaurants in our area). Now, I find myself without insurance for a multimillion-dollar property, and I suspect the agent is reluctant to revise the policy.
Given that our family’s entire insurance portfolio is with this agency and Auto-Owners, it’s clear that I need to find a new agency. My previous experience with insurance is limited to renters insurance and personal auto coverage, so I’m feeling lost about how to tackle this transition or what steps to take next. Any advice or suggestions would be greatly appreciated!
It sounds like you’re dealing with a really frustrating situation, especially with the added pressure of managing your family’s business during such a challenging time. Here are some steps and suggestions to consider as you look to switch insurance agencies:
Evaluate Your Current Coverage: Before making any changes, compile all the information regarding your current coverage (if you can). Gather any emails, documents, or recorded conversations that indicate what you were promised. This may help when discussing your case with a new agency.
Research New Agencies: Look for agencies specializing in commercial insurance, particularly those with experience in properties that include restaurants. Ask for recommendations from other local business owners or check online reviews to find reputable agents.
Schedule Meetings: Once you’ve shortlisted potential agencies, schedule meetings with them to discuss your specific needs. Be upfront about your current situation and what you’re looking for. A good agency will be willing to listen and tailor a policy to meet your requirements.
Ask the Right Questions: Prepare questions to ask potential agents, such as:
What is the process for claims, and how do you handle underwriting risks for commercial properties?
Get Quotes: Ask the new agents for insurance quotes based on the details of your properties. Ensure the quotes cover everything you need, including liability related to the restaurants.
Understand the Fine Print: Carefully review the policy details to ensure you understand the coverage limits, exclusions, and any additional endorsements that might be necessary for your properties.
Consider Bundling: Since you mentioned that your family has coverage through the same agency for other policies, check if the new agency can offer bundled services for all your insurance needs, which could lead to better rates.
Move Forward: Once you’ve selected a new agency and are satisfied with the coverage options, make sure to formally cancel your current policy (if necessary) so you don’t experience any gaps in coverage.
Stay Proactive: After switching, keep in touch with your new agent to ensure that all your properties are adequately covered and revisit your policies regularly as your business evolves.
Remember, communication is key when dealing with insurance, so don’t hesitate to advocate for your needs. It’s essential to have coverage that properly protects your business and peace of mind during this transition. Good luck!