The most common mistake when buying insurance is not buying enough of it. But don’t take my word for it:
- Lawyers tell me that their clients don’t buy enough no-fault medical coverage or uninsured motorist coverage.
- CPAs tell me their clients don’t buy enough business-interruption insurance to replace profits after a loss to a business.
- Contractors tell me that their customers don’t buy enough home insurance to get their homes rebuilt correctly without skimping on the details.
- Jewelers tell me their customers don’t buy enough special-valuables insurance to replace their jewelry when they lose it.
- Business-sale consultants tell me their clients don’t buy enough post-transition insurance to protect proceeds from comeback lawsuits.
- Wealth managers tell me their clients insure only a portion of their net worth against liability and allegations by people targeting the rich.
People don’t buy enough insurance for 5 reasons: 1) they don’t realize how expensive loss recovery is going to be, 2) they don’t believe the insurance agent trying to sell them more coverage, 3) they weren’t given information or more options to consider, 4) they don’t believe anything will happen to them, 5) they think they’re saving money.
The consequence of an insurance policy that comes up short is the most expensive insurance policy you can buy. That’s why we believe in listening to experts, in being educated about the risks and the alternatives to financing loss, and then customizing the insurance to fit your needs
Photo: Rachael McGraw, – Siena, Italy