Why Is Business Insurance So Confusing?

If you find business insurance to be confusing, don’t worry, you’re not alone.

For most of history, the insurance industry has not been known for its transparency.

Insurance carriers and agents purposely kept their knowledge and experience on policy coverages, pricing, and process for purchasing business insurance to themselves.

This way business owners always needed them in order to get the right insurance.

At Rogue Risk, we believe this is wrong. We believe you should have all the information and knowledge you need about your business insurance to make the right insurance decision (on your terms).

This is why we have hundreds of videos on our YouTube channel.

Business insurance should not be confusing… but if you watch the video below, you’ll understand why it sometimes is:

Business Insurance is confusing, time-consuming, and costly.

We fix these problems.


Why Is Business Insurance So Confusing?

The answer is straightforward, business insurance is a legal contract.

A lot of people view insurance as a product like you’re buying a new shovel, or you’re buying a new computer or a new software program, and that’s just not what it is.

Insurance is a binding legal contract that when you sign, whether that’s with a pen or you do an electronic signature, you are agreeing to the terms of that contract.

Over the last 150 years, there have been so many lawsuits regarding the language inside of insurance contracts that insurance companies have had to stuff these policies with

  • Terms,
  • Definitions,
  • What’s included,
  • What’s excluded,
  • and so much more.

What you find is that process just becomes incredibly complicated.

How to Make Business Insurance NOT Confusing

I’m not trying to make excuses for the insurance industry.

But I have to read policy forms as part of my job. When we take on a new insurance carrier into Rogue Risk, we have to understand what our carriers are covering and what they’re not covering, and unfortunately, it’s complicated.

You can, at certain times, feel like smoke is coming out of your ears, but the truth is those contracts are important because they define what is covered and what isn’t

This is why you want to work with an insurance advisor who can help put business insurance lingo into common terms.

This is how you make business insurance NOT confusing. You work within who can filter the language into actionable terms you can apply and make decisions based upon.

That’s what we’re trying to do with these articles and our YouTube channel, boil down the confusing terms into high-level language about what you’re purchasing, why you’re purchasing it, and how to get the right business insurance for your business.

The Rub

You can’t take the risks necessary to grow your business if you don’t have a strong understanding of insurance that will act as a safety net if something goes wrong.

Unfortunately, with that, comes some legal, contractual language that does become confusing.

If you want it boiled down into simple terms you can take action on, find an insurance advisor, (we would love that to be Rogue Risk), but find someone you trust who will walk you through the process, help you choose the right coverages, and carrier and be there when you have a need.

This way you can go back to growing your business.

If this is the kind of relationship that you’d like with your agent or if your current insurance professional has never addressed these issues with you before, then I’d encourage you to reach out to us at Rogue Risk, today.

I hope this article helped you better understand small business insurance.

Thank you,

Ryan Hanley

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