To Bid, or Not To Bid? That's Not the Question!
Posted by Robert Phelan on Wed, Aug 18, 2010 @ 01:40 PM
I am going to say some harsh things in my post today. Maybe it’s because I was listening to political talk radio at lunch today. Maybe it’s because it’s long overdue. Regardless, what I’m about to say could save your business so please pay close attention.
Business Insurance is not a commodity! I’ll say it again louder. BUSINESS INSURANCE IS NOT A COMMODITY!!!
If you believe me, then why do most Connecticut construction company owners put their business insurance out to bid and base their buying decision solely on price?
When I make this next statement, remember that I’m here to save your business and not make friends. Buying business insurance based solely on price is one of the more foolish purchasing strategies a construction company owner or CFO can make.
Why?
Because when disaster strikes, your business insurance is all that stands between you and bankruptcy. Disaster comes in many different forms. Ask the owners of Hartford Distributors or the owners of Kleen Energy. Whether it’s workplace violence, multi-million dollar lawsuits or a prolonged business shutdown, when disaster strikes, you don’t not want to rely on the cheapest insurance for your survival.
Think of what you’ve built. Think of the hours of work and the sleepless nights. Think of all the people who depend on your company for their livelihood. This income-producing asset you call a business is valuable. Do you entrust any of your other valuables to the cheapest protection you can find? Is that how you chose your car which is protecting your family or the alarm system at your house or the sprinkler systems in your building?
It absolutely drives me crazy when the owner of a well-established, well run construction company will give more analysis to buying a piece of equipment than buying business insurance. But you know what? I’m going to let you off the hook. It’s not your fault. It’s the insurance industry’s fault for promoting price as the most important decision criteria for their product.
So if price isn’t the main criteria, what is? Stay tuned for our next three posts on how Construction company insurance buyers can make the smartest decisions BEFORE their next renewal.