When it comes to insurance, most people know they need it, but far fewer understand what’s actually in their policy or how the decisions they make today can have a major impact when a claim happens.
In the newest episode of The Accel Advantage podcast, Corey Rekers sat down with Nick Thompson, Director of Legal and Operational Strategy at The Accel Group, to dive into a lawyer’s perspective on buying insurance and avoiding those dreaded “gotchas.” Through illustrative stories, Nick shares some tips and tricks to help protect your business and your family.
Risk Transfer: The Power of Contracts
At its core, an insurance policy is a contract. It’s a contract in which risk is transferred, and the insurance carrier takes on some of the business’s risks. Every single contract your business signs, not just your insurance, can carry risk implications.
Take construction, for example. If you hire a contractor to work on your property and something goes wrong, say, part of a new facade falls and injures someone, you could be on the receiving end of a lawsuit. That’s where additional insured endorsements come in. If your contract required the contractor to name you as an additional insured, their insurance, not yours, might cover the claim.
Why It Matters
Shifting liability away from your own insurance program can help keep your loss history clean, which ultimately leads to lower premiums and fewer renewal headaches.
What is a Waiver of Subrogation?
A waiver of subrogation is another concept that can protect your business. It’s the notion of an insurance company that’s paid a claim will sue another party to recoup what they paid in claim payments and to some extent other expenses that they may have incurred.
That’s why waivers of subrogation matter. Including a waiver of subrogation in your insurance contracts means another party’s insurance company can’t come after you for reimbursement.
Building the Right Coverage Strategy
The truth is, no two businesses (or people) have the same risk tolerance. That’s why having the right advisor is key. A great agent or broker will help you:
- Educate you on insurance coverage gaps
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Understand where your biggest risks lie
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Reallocate budget toward high-impact coverage (such as shaving premium dollars off older fleet vehicles to afford more liability protection)
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Strategically protect your balance sheet from catastrophic loss
It can be easy for business owners to solely focus on the cost of premiums and overlook how a poorly structured policy could cost far more after a claim.
Personal Insurance
The episode also touches on personal insurance, especially for business owners with significant assets or families. Nick highlighted one of the most undervalued protections in a personal auto insurance policy: uninsured and underinsured motorist coverage.
If you’re hit by someone without enough (or any) insurance, uninsured/underinsured motorist coverage makes sure your own policy steps in. And yet, many people unknowingly reject this coverage to save a few bucks!
It’s all about strategy. It might not seem right in front of your face, but you’ll regret in the future if you’re missing important coverages.
Choosing the Right Partner
At the end of the day, insurance is only as good as the advice behind it; education is key. That’s why partnering with an independent agent who can offer you a variety of options, understands policy language, and learns about your business priorities is essential. If you’re interested in speaking to one of our advisors, get a quote today.
Listen to the Full Episode
We’ve just scratched the surface. For a deeper dive with real-world examples, check out our full conversation with Nick Thompson on The Accel Advantage podcast wherever you get your podcasts.
🎧 Spotify
🎧 Apple
🎧 YouTube
🎧 More options
Read the accessible transcript (text version). We provide transcripts to ensure accessibility and a better user experience for all visitors.