Hardwood Executive

Finding the Right Fit for Your Insurance Program

By Lindsey DiGangi
Assistant Vice President of Marketing
Pennsylvania Lumbermens Mutual Insurance Company

While your business insurance renews once a year, managing your risks is a year-round undertaking. Your business and your risks can change with every decision you and your employees make. As business leaders, you’re pulled in many directions, so having the right relationships to help you with managing your insurance program is key. The first step is identifying the role of those you trust with your insurance.

Your insurance broker: Your broker is the person who represents you and your business to the insurance carrier. They help you to identify your unique risks and offer coverage type and limit recommendations, which are then presented to an insurance carrier for consideration. They stay updated on changes in your business that may affect your insurance needs and assist in claims reporting in the event of a loss. When choosing an insurance broker, you should look for someone who is communicative and responsive, and someone who is knowledgeable of your business and seeks right-sized solutions that work for you.

Your insurance carrier: Your insurance carrier is the company that is transferring risk from your balance sheet and putting it on theirs. They are providing a promise to pay in the event of a covered loss in exchange for an annual premium. Your carrier will determine eligibility and pricing for your particular risks. They will also provide you with tools and resources to manage your risks proactively. When choosing an insurance carrier, you should consider overall value. While price is one component that may seem top of mind, responsiveness, expertise, and understanding of your business also provide tangible value that shouldn’t be overlooked. While you may have never had a claim, the fact is that a loss can occur at any time. Having an insurance partner who understands your business and has taken the time to know you leads to fast and fairer claims handling so you can turn your attention back to business.

As a member of the hardwood industry, you understand the importance of relationships in successfully selling the value of your products and your business. Don’t underestimate the value of relationships in your insurance buying process. Your insurance carrier and your broker can provide the support to right-size your coverage, help you manage risk proactively, and respond quickly and fairly in the event of a loss. Be comfortable with whom you choose to partner with.