Creating solutions for customers with open claims

In 2005, David installed a hose that burst because of a manufacturer defect, causing $150,000 worth of damage to his client’s residence. Today, the claim is still open and complicates David’s insurance policy renewal.

It’s a heavy albatross around his neck because insurance companies don’t want to take on clients with open claims.

Sourcing solutions for David’s renewal, we found insurers frequently expressing concern that a similar claim could occur in the future.

It’s true that this problem could occur again, but David has been using certified components since the previous ones revealed their defects. And even quality components can fail. For instance, an inexperienced plumber may over-tighten the hose and cause it to rupture.

The bottom line is that our job is to connect David with the right coverage at a competitive cost. This was a major challenge because the various insurers we contacted provided extremely costly quotes – up to triple David’s current premium, although the coverage and other policy conditions were acceptable for his needs.

Given this situation, we paused to give David an update. The intention was to empower him and give him choice. Because insurance coverage is crucial for businesses to ensure safe operations and regulatory adherence, we wanted to at least give him the option of renewing to escape the inconvenience, despite the cost.

If not, we would roll up our sleeves and continue the search.

In the interests of full disclosure, we explained all the reasons for the drastic increase in his premium. We informed him that we had found him appropriate coverage with a standard insurer and that he had the option to bind the policy right then and there and forget all about it.

Now, we could have used these reasons as an excuse to push the premium increase on David to wash our hands of the matter. But David expressed that the new premium was unworkable for him, so we got right back to work and consulted a nonstandard insurer. A strong relationship with underwriters at that firm helped us secure a cost effective policy offering the same coverage David has today.

The lower premium does mean less commission for our team, but it was not a problem because that’s what David’s needs called for. In fact, we are willing to take a hit on our commission if it means delivering a better solution for our customers.

The only inconvenience David had to endure to secure the better rate was signing a few extra forms and even that was was done through email. When all was said and done, David had acquired considerable insight into the challenge facing his insurance coverage and saved a huge chunk of money.

Our job now is to close that claim to help David avoid going through this all over again and ensure a speedy and painless renewal next year.