Insurance
Covering your assets
Progressive’s Ken Bowman on what you should look for in an insurance company
By Brian Horn
Smart Business Cleveland | December 2007
It may be the last thing you want to think about when you’re running a business, but selecting the proper company to cover your
commercial car insurance needs can ultimately make your life easier.
Ken Bowman, commercial auto product manager for the
Progressive Group of Insurance Cos., says that an accident at
a smaller business can be catastrophic for the company, while
larger companies have more vehicles and employees, increasing the chances of an accident. And when an accident does
occur, the type of insurance company you’re dealing with can
make the difference between the experience being a huge
headache and a smooth process.
“Insurance is the product you hope you never have to use,
but, when you use it, how it is handled is absolutely the most
important thing,” Bowman says.
Bowman offers the following tips to help you make sure you
have the right insurance company to meet your needs.
Remember that it’s not all about price. Choosing an
insurance company may be partially about price, but it’s about
much more than that, Bowman says. Knowing that you are
dealing with a company that will be there when you need it is
also a major factor. And be sure that the company knows commercial auto risk and understands commercial auto claims
because it has experience in those areas.
“There are instances of where this could be the flavor of the
day for some companies, and they come in and go out, and
companies could be in a bind if something happens,” Bowman
says.
Look for companies that have dedicated commercial claims
operations and handle their claims in house. If the insurance
company uses an outside company to handle claims, it creates
the potential for problems during the handoff.
“Now, all of a sudden you are dealing with somebody else you
didn’t expect,” Bowman says. “There is potential for dealing
with people that haven’t been trained or aren’t experts in the
market. You may be hiring the company, but they are just a
middle man or outsourcing the activity that is most important
to you.”
Look for flexibility. Your business changes over time, and a
flexible insurance company can assist you with your needs. If your
business is seasonal, then your cash flow is seasonal, and you need
a company that will cater to your needs.
“You might want to deal with a company that can allow you to
scale up your coverage during the season and potentially scale it
back off-season,” Bowman says. “You might also want a company
that has a flexible payment plan that allows you to pay for your
insurance when cash flow is in season and not paying when out
of season.”
Find a company that can accommodate your busy schedule. You have enough to deal with during the workday without
having to find time to deal with insurance, as well. Bowman says
it’s a good idea to find a company that can support you after-hours
or on the weekends. A well-designed Web site that allows you to
access information 24-7 is also a bonus.
“Those things create flexibility for small business owners as well
as executives that have a day job,” Bowman says.
HOW TO REACH: Progressive Group of Insurance Cos., (888) 806-9598 or www.progressive.com
Cost savings
Insurance doesn’t have to be a major pain if a business owner is
able to control the cost.
Ken Bowman, commercial auto product manager for the
Progressive Group of Insurance Cos., offers suggestions on how to
keep down the cost of insurance.
Know the driving history of the employees driving your vehicles.
“Do I want to look at driving history if I know these people are
going to be operating vehicles for me because I know it’s going to
influence cost of insurance?” Bowman asks.
The answer is yes. Tracking proof of previous insurance can help
you keep costs down.
“It’s in the control of the business to do that,” Bowman says. “If
you are an executive in a business using vehicles, you might want
to think about that.”
Don’t let your insurance lapse. “Some executives let their insurance lapse, which can be a significant driver in cost when you
restart your insurance,” Bowman says.
If there’s a stretch of time when you know you won’t be using
your vehicles, scale back on insurance instead of letting it lapse.
“Many construction companies take the winter off and park their
vehicles,” he says. “You may not want to have liability insurance in
that case because you know you aren’t going to drive that vehicle
for four months. Under certain circumstances, you might want to
remove your liability insurance, but you might want to keep your
physical damage insurance.”
