Charmaine Sample: So I’m sitting here with Marc Rovner of Rovner & Company and we’re going to go ahead and answer the top “general insurance” questions this week from our new series, TELL-ALL TUESDAYS. How are you, Marc?
Marc Rovner: Doing good. Good morning.
Charmaine: So let’s start with the basics. How does insurance work?
Marc: That’s an awesome question. The concept of insurance is to transfer risk and, ultimately, what that means is that if you have a risk that you are unable or unwilling to be able to sustain. For example, somebody owns a home and there’s a risk that the home could burn down. You can transfer that risk to an insurance company by giving them insurance premiums and now they take the risk of damage to your property in that case. That’s the concept of all insurance; to transfer the risks you have either in your possessions or your liability. Transfer that risk to place it with a large financial institution that can sustain the loss.
Charmaine: What types of insurance policies does someone need to have?
Marc: That’s a great question. Everybody is different so it depends. Some of the things we do is help analyze where their exposure and risk lies. So, obviously, if you get a car, the state is going to require you get insurance but what permits do they need? So that’s a conversation we have often with personal lines customers. If you take a mortgage on your home, the bank is going to require insurance but what terms and conditions do you have? If you have a business, you really need to analyze do you have a product liability exposure, do you have a completed operation exposure, do you have a cyber liability exposure, do you have an employment practices liability exposure or a general liability exposure? So each individual scenario will carry different exposures, different risks, and you really need to speak with a qualified expert who can really make sure that everything is buttoned up tightly.
Charmaine: What are insurance premiums? Why do they sometimes increase?
Marc: Insurance premium is the money you pay an insurance company to transfer the risk that we discussed and there’s a variety of different reasons insurance premiums can rise. There are many variables that go with that including the risk profile. So if you got caught drinking and driving multiple times, you will carry a higher rate than somebody who’s squeaky clean and never had any driving incidents. The reason for that is the risk profile is elevated and on an actuarial basis, they have a much greater likelihood to be involved in a claim and, as such, the insurance company charges for it.
Charmaine: Which insurance carriers are the best?
Marc: It depends. There are some classic names out there. Chubb is a very well-known brand that offers a really high level of customer service and concierge-level claims handling. We work with a variety of excellent carriers that are able to play in specific markets for different types of deals. What we do is analyze what we need and then we choose the appropriate carrier for that particular exposure.
Charmaine: Are insurance requirements the same in every state?
Marc: No they’re not. That’s a great question. Unlike other large industries, insurance regulations are governed on a state-by-state basis so everything from minimal automobile liability limits to all insurance policies are developed by the state insurance commissioner.
Charmaine: Why Rovner & Company? How can you help?
Marc: Firstly, we believe insurance is all nonsense until you need it. With that in mind, our goal is to make sure that our customers are protected in the event of a terrible catastrophe. What we do differently is that, firstly, we have the experience. We’ve underwritten over 40,000 policies so we know how to do it, we do it for everybody from the biggest customers and the smallest customers across the country, and we have the broadest array of carriers out there. Quality carriers that can transfer the risk and protect you.
Charmaine: Thank you so much, Marc. That was extremely helpful and I think we all understand a little more about insurance.
Marc: My pleasure.
Give Rovner & Company a call for help with any of your personal or commercial insurance needs. We offer FREE QUOTES and a wide range of carriers to meet your individual needs. Call into the office to speak to a qualified agent at 561-287-6279!
Rovner & Company, LLC
11098 Biscayne Blvd, Ste 100
Miami, FL 33161