The advancement of technology has made many things simpler and easier to manage and the insurance industry has certainly seen its fair share of technology advances, which has brought enhancements and improvements to many areas of the industry, but it is not without its dangers. Businesses now have the ability to purchase insurance products online without any broker or intermediary. One of the selling points to this approach is the speed and savings one can achieve, but as with anything new, I would urge caution when considering such an approach.
I had the opportunity today to review an insurance quote for a business that obtained it on their own online through a platform dedicated to their industry. The quote was practically bare with coverage information, only highlighting a few coverages it was including, and even those were at lower limits than parallel policies purchased in the more conventional manner typically provide. There were no details of coverage nor any mention of policy exclusions. The consumer thought they received a great deal, but I thought otherwise.
Purchasing insurance online may prove to be a viable alternative approach, but from what I have seen thus far, it is not one to which I would recommend pursuing. Not having an insurance professional to explain the coverage, identify the deficiencies, advise on the options, assist with claims and policy questions, etc. is not a risk worth taking. The fact that multiple insurance publications published a story today on a recent NJ insurance case in which the claims adjuster made an error in judgment that ended up costing the insurer, just goes to show how complicated policies can be even for experienced professionals in the field and going it alone without any professional opinion is a daring proposition not worth taking.