126 Questions to Ask

Your Insurance Agent

Plus One to Ask Yourself

Scott Simmonds, CPCU, ARM

Insurance Consulting
207-284-0085
Scott@ScottSimmonds.com
www.ScottSimmonds.com

Insurance from an Unbiased Point of View

126 Questions to Ask Your Insurance Agent
By Scott Simmonds, CPCU, ARM

I'm an insurance consultant. I work with insurance buyers, helping them buy and manage
their insurance programs. I don’t sell insurance and I never accept fees, commissions, or
gifts from the insurance agents I work with for my clients.

Recognizing that not all business owners want to hire a consultant, I put together this list of
questions for insurance buyers to ask their agents. Many people don’t know what questions
they should be asking. They don’t know what they don’t know. I hope this list helps.

Not all questions are appropriate for all businesses. You probably shouldn’t just hand this list
to your agent. My guess is that most insurance buyers would be on overload after discussing
the tenth question.

Run through the questions and see which ones seem to apply to you. Put a check by those
you are interested in and talk with your agent. The idea is to spur a discussion.

Of course, you can always call me if you need help understanding your coverage. It is, after
all, what I do.

Scott Simmonds, CPCU, ARM

Insurance Consulting
207-284-0085
Scott@ScottSimmonds.com
www.ScottSimmonds.com

A Note about the Copyright on this Document

You have permission to email this, to post this, to print this and to pass it along for free to
anyone you like, as long as you make no changes or edits to its contents or digital format. In
fact, I’d love it if you’d make lots and lots of copies. The right to bind or publish this in any
way and/or sell it, however, is strictly reserved.

For your own copy of this document – free, without obligation – go to

www.scottsimmonds.com/questions.html.

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Copyright 2007 • Scott Simmonds • All Rights Reserved
General Questions
These questions will apply to most business operations. They deal with issues of service and
the appropriateness of the insurance company.

1 If I were a prospect and not a client, which insurance company would you recommend?
2 How comfortable are you with the quality of the service provided by my insurer?
3 Do my insurance requirements meet the provisions of my lease?
4 Does your agency have services I am not now taking advantage of?
5 Does my insurance company have services I am not now taking advantage of?
6 Do I have coverage for the loss of a key employee or partner by death or disability?
7 How do you assure me that you have reviewed the insurers you represent for a better
insurance program than the one I have now?
8 Have you reviewed the Best Ratings for my insurance companies?
9 Have you reviewed my policies and a list of additional insureds for areas of concern?
10 What insurance changes do you see coming at us?
11 What is our plan for the coming year’s renewal?
12 What should we consider for coverage improvements?
13 How can we make our company more attractive to insurers in an effort to receive better
coverage at a better price?
14 Will our insurer review our loss control policies and make recommendations?
15 Can we consolidate any of our policies into one and/or move them to a common
expiration date?
16 What's your biggest concern with our insurance program?

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Copyright 2007 • Scott Simmonds • All Rights Reserved
Property Insurance Issues
Building and contents insurance is basic to most business insurance programs. Included
here are also questions regarding loss of business income, transit, cargo, inland marine,
machinery, and computers.

17 Do I have replacement cost coverage?

18 Do I have blanket insurance?
19 Are my limits of coverage adequate?
20 Are there coinsurance penalties in my policies?
21 Am I covered for flood?
22 Am I covered for windstorms?
23 Do I have a separate windstorm deductible?
24 Do I have earthquake coverage?
25 What property insurance am I missing?
26 Do I have adequate coverage for my employees’ property or tools?
27 Is my business income coverage written to protect me from a calamity?
28 Is my extra expense coverage properly designed and adequate?
29 Do I have coverage for equipment breakdown?
30 How does my policy protect me from power failure?
31 How does my policy protect me from loss of communications – phone, Internet?
32 What do I have for terrorism property coverage?
33 Do I have adequate coverage for cargo and goods in transit?
34 Do I have coverage for a fire at my primary supplier’s plant?
35 Do I have coverage for a fire at my primary customer’s site?
36 Do I have coverage on my plane, boat, motorcycle, golf cart?
37 Does the policy cover my forklifts, cranes, and pallet movers?
38 Do I have coverage for damage to my stock or property caused by contamination?
39 Do I have coverage for backup of a sewer or drain?
40 Do I have coverage for the shutdown of my business because of a governmental action
or forced evacuation?
41 Do I have coverage for outdoor property such as fences, flags, signs, etc?
42 Do I have coverage for glass breakage?
43 Do I have coverage for riot or civil unrest?
44 Am I insured for my loss of business because of a riot or civil unrest?
45 How are my computers covered?
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Copyright 2007 • Scott Simmonds • All Rights Reserved
46 Is my computer coverage adequate?
47 Is my software and data covered?
48 Are my valuable papers and records covered for the cost of recreation?
49 Do I have coverage for my renovations or additions?
50 Do I have adequate coverage for debris removal after the destruction of a building?
51 Do I have coverage for the destruction of the undamaged part of my building after
damage is caused to another part and a civil authority forces the destruction?
52 Do I have coverage for the increased cost of reconstruction to meet current laws and
building codes?
53 Do I have coverage for laptop computers that are away from my business?
54 Do I have coverage for equipment owned by my company that is at employees’ homes?
55 Have you reviewed my condominium documents for insurance provisions?
56 Does our builder’s risk insurance include coverage for loss of income if the building is
destroyed prior to completion?
57 Does our builder’s risk insurance include coverage for the architects’ fees and other soft
costs that will be incurred should we have to rebuild before completion?

More Information and Articles

My website is loaded with articles and more help for business owners trying to manage their
insurance. All are free for the taking. Go to www.ScottSimmonds.com.

Take a look at my blog too – www.InsuranceBuzzer.com.

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Copyright 2007 • Scott Simmonds • All Rights Reserved
Crime Insurance Issues
When the bad guys try to get you, how are you protected?

58 Do I have adequate coverage for employee theft?

59 Do I have adequate coverage for loss of money and securities?
60 Do I have coverage for forgery or counterfeit currency?
61 Am I covered for the loss of trade secrets if an employee who goes to a competitor?
62 Am I covered for computer theft / fraud?
63 Do I have coverage for extortion?

A Note about the Copyright on this Document

You have permission to email this, to post this, to print this and to pass it along for free to
anyone you like, as long as you make no changes or edits to its contents or digital format. In
fact, I’d love it if you’d make lots and lots of copies. The right to bind or publish this in any
way and/or sell it, however, is strictly reserved.

For your own copy of this document – free, without obligation – go to

www.scottsimmonds.com/questions.html.

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Copyright 2007 • Scott Simmonds • All Rights Reserved
Liability Insurance Issues
Here I have included questions dealing with general liability and professional liability.
Insurance people may mock this combination. It is, however, more in line with the thinking of
most insurance buyers. This section covers issues where you injure someone or damage
their property.

64 Do I have adequate general liability coverage?

65 Are my aggregate limits high enough?
66 Does my general liability insurance include a per-location aggregate?
67 Are there any limitations on the defense cost coverage in my liability policies?
68 Do I have adequate coverage for my professional liabilities?
69 What do I have for terrorism liability coverage?
70 Are my pollution liabilities properly covered?
71 Do I have coverage if an employee assaults a customer?
72 Do I have liability coverage for sales outside the US?
73 What coverage do I have for a customer suit over invasion of privacy?
74 What coverage do I have for loss of customer’s data and private information?
75 Do I have adequate coverage for an employee who sexually abuses someone?
76 Do I have adequate coverage for an employee who harasses a customer?
77 Am I covered for the liability from my plane, boat, motorcycle, or golf cart?
78 Do I have coverage for the expenses of a product recall?
79 Have you reviewed my leases for insurance issues and areas of concern?
80 Do I have coverage for construction defects in projects I build?
81 Do I have liability coverage for injuries resulting from mold, mildew, or fungus?
82 Do I have adequate coverage for libel, slander, false arrest, wrongful detention?
83 Does my liability policy insure me for emotional distress and mental anguish I am
alleged to have caused to others?
84 Do I have coverage for violating someone’s copyright, trademark, or patent?
85 Do I have coverage for contractual obligations I face?
86 Do I have coverage for operations and products that I have discontinued?
87 Do I have coverage for errors in the administration of my employee benefit plan?
88 Have you reviewed our liability insurance looking for exclusions of concern?
89 Do you have suggestions on how we can use certificates of insurance to limit our loss
exposures to contractors?

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Copyright 2007 • Scott Simmonds • All Rights Reserved
Auto Insurance Issues
Cars and trucks present a risk management challenge for many companies. Here are some
issues to ask your agent about.

90 Are my limits of coverage adequate?

91 Do I have coverage for my liabilities when my employees drive their personal vehicles?
92 Should I have my employees buy the collision coverage when they rent cars from rental
car companies like Hertz, Budget, and Avis?
93 Should I consider dropping collision coverage on any of my vehicles?
94 Is my uninsured motorist coverage adequate?
95 Are my employees covered if they are responsible for injuries to fellow employees?
96 Can you run driver’s license checks for me on employees and potential employees?
97 What coverage do I have for the rental of a vehicle after an accident or theft?
98 Have you considered a policy that does not require me to report every car I buy or sell?

Here are some special questions for auto dealers:

Are my garage keeper’s liability limits adequate?

Are customer’s cars covered on a primary basis or does their insurance pay first?

Do I have insurance for errors in titles of used cars I sell?

Have you investigated higher deductibles to save me premium?

Are there any exclusions or limitations to the coverage I have for theft of vehicles?

Are my vehicles and my customer’s vehicles covered for damage by flood?

Do I have coverage for vehicles damaged while being towed?

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Copyright 2007 • Scott Simmonds • All Rights Reserved
Workers’ Compensation Insurance Issues
Most states require that employers buy workers' compensation insurance. Here are some
questions to ask.

99 Am I missing any discounts on my workers’ compensation policy?

100 Has my workers’ compensation insurer provided maximum credits on my policy?
101 Have you reviewed the open losses on my workers’ compensation claims record to spot
over-reserved claims?
102 Have you reviewed my workers’ compensation audits for errors in employee
classification?
103 Have you reviewed my workers’ compensation experience modification for errors or
opportunities for savings?
104 If an employee travels outside of the US, what coverage do I have for their injuries?
105 Are my limits of coverage for employer’s liability adequate?
106 What services can I request from my workers' compensation insurer that will help me
control losses?

Reasons to Hire an Insurance Consultant

-Your premiums have gone up. An insurance consultant can help you find the right insurance
at the best price.

-You are not sure you have the right insurance coverage. As insurance specialists, insurance
consultants know the right policy terms and conditions.

-You are having trouble getting a claim paid. We have been there before! An insurance
consultant can help you navigate the insurance claims process.

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Copyright 2007 • Scott Simmonds • All Rights Reserved
Umbrella Liability Insurance Issues
The umbrella liability insurance policy provides coverage above the limits of your basic auto,
general liability and employer’s liability coverage.

107 Do I have adequate umbrella liability coverage? Have you quoted higher limits so I can
see the incremental costs?
108 Are my aggregate limits adequate?
109 Are there limitations to the coverage for defense of claims?
110 Does our umbrella liability insurance cover us for international exposures and lawsuits?
111 Does my umbrella liability insurance include coverage for my liquor liability?
112 Are there areas where the umbrella policy is not as broad as the underlying policies?
113 Does our umbrella liability insurance include coverage for professional liability claims?
114 Have you investigated insurers other than our primary insurer for our umbrella liability
coverage?

More Reasons to Hire an Insurance Consultant

-Your business is expanding. Will your insurance meet your needs? Without the pull of
commissions, you know an insurance consultant will move you to the right decisions.

-You want to have other agents quote your insurance. An unbiased insurance advisor can
help sort out the issues and intricacies of the quotes you receive.

-You are considering adding a new coverage to your insurance program. Is your agent
earning a commission or do your really need the insurance? An insurance consultant can
help with the analysis and the decision.

-Your insurance is due to renew and you don't have time to deal with it. An insurance
consultant can save you time and effort. You get right to the decision without blind alleys and
false starts.

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Copyright 2007 • Scott Simmonds • All Rights Reserved
Executive Risk Insurance Issues
I've lumped in many different policies here – directors and officers, employment related
practices, fiduciary. They all protect the managers of an organization from allegations that
they did a poor job running the business – threats by stockholders, employees, and failure to
follow legal requirements.

115 Do I have coverage for my exposures to personal liability under ERISA?

116 Do I have a bond covering my retirement fund assets as required by ERISA?
117 Do I have adequate coverage for an employee alleging discrimination or harassment?
118 Do I have the coverage I need for suits brought against me by stockholders?
119 Do I have coverage for kidnap and ransom of myself, family, or employees?
120 Do I have coverage for harassment or just sexual harassment?
121 Does my directors’ and officers’ insurance include entity coverage?
122 Have you reviewed the exclusions on my d&o insurance checking for issues of concern?
123 What services does our insurance company offer to limit the impact an employment
related allegation like harassment, wrongful discharge, or discrimination will have?
124 Are their limitations in the policies for defense costs?
125 Are defense costs a part of or in addition to the limits of liability?
126 Are these claims-made policies? How are prior acts insured?

The key question for you to ask yourself:

If my building were in rubble after a fire, would I be comfortable with this
insurance company and this insurance agent by my side?

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Copyright 2007 • Scott Simmonds • All Rights Reserved
About Scott Simmonds, CPCU, ARM
Scott Simmonds, CPCU, ARM, is a 27-year veteran of the insurance business. He has
provided insurance advice and counsel to hundreds of companies, large and small,
throughout the U.S.

After graduating from Babson College, in Wellesley, Massachusetts, Simmonds entered the
insurance business. In 1987 he received the Certified Insurance Counselor designation from
the Society of CIC. In 1995, Simmonds completed his studies to qualify for the Chartered
Property and Casualty Underwriter designation conferred by the American Institute for CPCU.
He completed the requirements for the Insurance Institute of America's Associate in Risk
Management designation in 2005.

Scott's insurance work has involved companies of all sizes, in a wide range of industries. He has
handled insurance and risk management issues for public and private corporations, including many
with international operations. Simmonds is licensed in property, casualty, life, and health insurance
consulting.

Scott lives in Saco, Maine, with his family. He enjoys canoeing, reading, hiking, and playing
his great-grandfather's 100-year-old violin. He is a past president of the trade association,
Maine Association of Professional Consultants. He also is a member of the Biddeford-Saco
Rotary Club where he is the current president. Scott is active in many trade and business
associations.

Scott Simmonds, CPCU, ARM

Insurance Consulting
207-284-0085
Scott@ScottSimmonds.com
www.ScottSimmonds.com

Insurance from an Unbiased Point of View

A Note about the Copyright on this Document

You have permission to email this, to post this, to print this and to pass it along for free to
anyone you like, as long as you make no changes or edits to its contents or digital format. In
fact, I’d love it if you’d make lots and lots of copies. The right to bind or publish this in any
way and/or sell it, however, is strictly reserved.

For your own copy of this document – free and without obligation – go to
www.scottsimmonds.com/questions.html.

Page 11
Copyright 2007 • Scott Simmonds • All Rights Reserved