Commercial insurers use a one-size-fits-all approach that leaves specialized businesses with major coverage gaps. A risk manager with 30 years of experience warns that today's market mirrors a 1986 insurance crisis, with rising premiums and shrinking coverage forcing owners to self-insure.
The unfortunate part about the insurance industry is the one-glove-all-fits mentality.
The more unique your business is, the more unique services you provide, probably more gaps you have in coverage. So you can put away, I mean, pretty large sums compared to like other types of tax-deferred vehicles. But then, you know, it's not money that you can ever see or touch or smell or know what's going on.
If you need it, it's a bad day and you're going to be thankful you have it. Being a risk manager for almost 30 years now, there's a lot of things business owners find themselves all the time self-insuring risk for. Congress recognized this back in 1986. There's a magazine cover behind me from Time magazine that was published in March of '86. It says, "Good morning, America. Your insurance has been canceled." And it's really similar to what's going on in today's markets too, unfortunately. I think a lot of business owners are finding themselves with substantial rate increases, paying more and getting less in coverage. Our clients are very successful people and they're capable of managing their money.
