Buy your commercial truck insurance at a reliable agency
When looking for commercial insurance, you may receive offers from scam companies. Here we tell you the precautions to avoid these possible frauds.
The commercial insurance market is usually very vulnerable to scams. Exist false advisors and insurance companies are dedicated to deceiving people by exchanging information and personal data through email, text messages, or phone calls. They usually contact you to offer meager prices that often cannot be matched by another business proposition. Hence the importance of always being alert and corroborating the information of the companies that contact you or recommend you.
Non-Admitted insurance agencies
Some insurance agencies in the market operate without authorization or certificates to prove they have the proficiency to do it. You must know that authorized insurance agencies must have an active license, which shows they have the financial muscle to support their clients’ claims.
In general, unlicensed agencies must meet the minimum economic requirements required by the states and therefore have no way to respond with the money to pay claims. What they do is that they charge premiums and usually pay small claims for the client to continue paying their monthly payment. Still, when a high-value claim is presented, this type of company chooses to disappear and leave the client without coverage and outstanding debts.
Small businesses are most likely vulnerable to these scams as they often have difficulty finding and paying for insurance from a reputable, legal, trustworthy company. Remember that cheap is expensive. It is preferable to work with a recognized agency with years of experience in the market than to receive low prices from a scam company that can bankrupt your business.
Why is it essential to purchase your insurance with a licensed insurance provider?
Several factors influence the advantages of working and doing business with a licensed insurance provider. To talk about the specific case of Preventty, we have 17 years of experience in the industry, sufficient knowledge to manage processes efficiently, and the ability to solve problems that arise in day-to-day operations.
We offer the necessary insurance according to the needs of each client, support the processes, and client requests to have permission and follow up on any doubt or claim. We also manage alliances with financial companies that are leaders in commercializing insurance.
What happens if you compare your policy with a freelance person?
It is relatively easy for a natural person in the commercial modality to freelance insurance. However, in most cases, natural persons focus solely on the operational part; that is, they sell insurance legally but need a defined business structure or the necessary support in case they have to answer for a problem. Flawed process before a client. In summary, they need the required financial muscle to take charge and respond adequately to a client’s demand, request, or disagreement.
For example, there may be a case in which a freelancer ensures you with an alleged policy for a million dollars, but it turns out that, in reality, he did not do it for a million but for 300,000 USD. In an accident where a person’s life is lost, and expenses of at least one million dollars must be covered, only USD 300,000 is disbursed, and no one covers the remaining value. Therefore, you must assume the cost or start a lawsuit against the person or entity that sold you a policy with altered values , and this process can take months to advance.
Recommendations when paying your commercial insurance
Regardless of the insurance you will buy, we recommend that you consider the following points to have a successful, efficient, and above all, safe process.
- Take your time. Start your process to buy or renew your policy early to guarantee that you can calmly compare prices and evaluate the advantages and disadvantages of purchasing your insurance with one company or another.
- Only sometimes is it good to request many quotes. Requesting many quotes can cause insurance companies to decline your request because they are receiving a lot of information from different agencies from which you are requesting quotes. It is always better to make the purchase decision not based on price but on the service quality they provide you. If you need to learn how to read a quote correctly, we’ll teach you how.
- When buying insurance, verify that the agency has updated all the operating licenses and verify the rate is superior (A+, A++), excellent (A, A-), good (B+, B++), fair (B, B-).
- Do not carry out transactions on behalf of natural persons or companies other than the ones carrying out your insurance application process. In other words, when you make a payment, only transfer money after verifying that the name and account number are those of the same company you are working with and not those of a clandestine company.
- When you check the status of the licenses, pay attention to the exact name of the agency mentioned to you from the beginning of the sale since names similar to those of the companies that do have a license are often used. If you find any slight difference in this data, you should report it to the Federal Trade Commission (FTC) and refrain from making any payment.
- If you do not work as Owner operator but have an employer, it is equally vital that you ensure the insurance company has the respective licenses.
You cannot prevent fraudulent or scam strategy practices in the insurance market, but you can find out how to avoid possible fraud. Be especially careful if you are an Owner Operator or work for a small company, as these are the most vulnerable scenarios to a scam attempt.
Get advice from professionals in the insurance industry, look for a reliable commercial insurance agency, talk to colleagues or friends so that you have different opinions, and receive feedback on companies with a certain level of recognition. This way, you can make the best decision to secure your business, avoiding losing money and time.