One question I get a lot is why insurance applications ask so many questions. They are time-consuming and they seem to ask questions that have nothing to do with the insurance that is being applied for.
As one of the people who help fill out these applications, I understand this 100%. It is time-consuming, boring, and it is not always apparent why they need to know this information.
These applications can, however, be a benefit to your organization. I want to run through a few ways in which they can help.
First, we know that applications are used to gain information about the business. In a previous article, I wrote about getting Preferred Pricing on a business insurance policy. We explored how information can help a business get better pricing than a business that did not provide more information. The insurance company is pledging their money for your company in the event you make a mistake.
This is where you can make your business stand out from the rest of the crowd. You want to make the insurance company want to write your business. Be proud of the fact that you have incredible financials. Play up the fact that your business hasn’t had a loss in five years and tell them why. That it is because you have an awesome risk management program and that you invest in your employees. Leverage this information to get good insurance rates. Make your insurance agent do it too.
Another way in which insurance applications can help your business is that they are a risk management checklist compiled by risk management professionals given to you for free. If you feel uncomfortable answering a question on the application, awesome! You now have identified a place where you can improve and start to work on that for the next year so that when you have to fill out that application next year you can show that you have made an improvement, and in the process, made your business better.
So the next time your insurance agent sends over an application or sits down with you to fill it out, be excited. This is an opportunity to show off what you work so hard for. Take advantage of it.