The dangers of being under-insured are real.
Financial Planning Comparison
Think of financial planning and the 1st bucket they tell you to save for, a rainy day fund of at least 90 days of expenses. What would financial planners advise if you had the choice of building that rainy day fund in pre-tax dollars rather than after tax dollars? Read this well written article detailing how to finance a business protective rainy day fund efficiently.
Insurance Brokers are Consummate Sales Professionals – Usually Lacking Captive Expertise
As quintessential sale professionals, insurance brokers walk that fine line of offering a value proposition to business owners without trying to sell them every possible policy in the commercial marketplace and driving up their cost of insurance.
The Best Insurance Brokers Now Introduce Captive Concepts to All Business Clients
More and more of the really good commercial insurance brokers today introduce custom captive insurance solutions to successful middle market private business owners. They do so because captives often have a strong value proposition when used in coordination with strategic commercial policy investments. Mitigating risks of under-insurance is one of those captive value propositions. Controlling future increases in costs of needed commercial insurance cover another.
Read a good article on the many dangers of under-insurance with specific industry examples by clicking here.