Pig Iron, Underwater, For FireMay 11, 2016
Someone once said to me a certain insurance company would only insure “pig iron, underwater, for fire”.
It might seem like an odd saying, but the gist is that the particular insurance company is so risk adverse they choose to insure things where the chance of a loss is, at a minimum, incredibly unlikely, if not impossible. Pig iron isn’t worth much, is not combustible, and, given that it is underwater, insuring it against the peril of fire isn’t likely to ever create a claim scenario.
As independent agents, the lack of underwriting appetite displayed by insurance companies can sometimes be as frustrating for us as it is the insureds we are trying to find coverage for. That’s why having options is such an asset.
Before buying an insurance policy for your business, or just assuming you are completely covered by your current policy, it is important to ask yourself what your likely causes of loss are. Each business is different and fits within different insurance companies’ comfort zones. While one carrier may have an excellent program that is specifically tailored to Auto Garages, the same company may find roofers to be an unfavorable class of business to write and purposefully price themselves out of the insurance market for those types of contractors.
Because different insurance companies have different experiences within different classifications of risk, it isn’t too hard for an independent agency to market insurance coverage for you to a variety of insurers and find you a great coverage to value ratio with one of those companies.
In short, what one company finds unfavorable, another company may consider to be the next closest thing to “insuring pig iron, underwater, for fire”; and that is just one of the values of working with a local independent agency. Contact us today – we can help you find the right coverage for your needs!
Disclaimer: Information and claims presented in this content are meant for informative, illustrative purposes and should not be considered legally binding.