What Do Insurance Companies and Witches Have in Common?

For anyone that has ever watched the Wizard of Oz, you know that there are good witches and bad witches.  Unfortunately for witches, the bad witches give all the witches a bad rap. 

Like witches, there are both good insurance companies and not so good insurance companies.  The not so good insurance companies often lead people to believe that  all insurance companies are the bad guys.  I’m here to tell you it’s not true!

Cavignac is an insurance broker and we have dealt with hundreds of insurance companies over the years.  Although occasionally we come across less than stellar insurance companies the vast majority do an excellent job. 

Often the bad rap on insurers arises out of the claims handling process.  Either a claim is denied when an insured thought it should be covered or a settlement was not what an insured expected.  This does happen but as mentioned it is the exception, not the rule. 

An insurance policy is a contract.  In exchange for the premium paid, the insurer agrees to indemnify the insured for certain losses.  What is and is not covered is spelled out in the insurance policy.  As a broker, we manage the claims process and advocate for our clients when we feel a claim is being handled incorrectly by their insurance company.  When the insurance company is fair, our role is minimal.  Of the hundreds of claims we handle every year, it is estimated that less than 5% involve incorrect coverage denials or settlement disputes. 

It is also important to remember that both the insurance company and the insured have certain obligations when it comes to claims.  The insurance company needs to adjust and resolve claims efficiently and fairly.  The insured is responsible for turning in the claim in a timely manner and cooperating with the insurance company in the resolution of the claim.  The importance of timely reporting cannot be overemphasized.  It’s also important to understand that not every claim is covered.

We as the broker also play a role in the claims reporting and resolution process.  Our client (the insured) will usually notify us of a claim and we report it to the insurer.  We counsel our clients during the claim resolution process and advocate for our clients when we feel a claim is not being handled correctly.  We also serve as the reality check when our clients expectations are unreasonable.

Dorothy ultimately had a successful outcome thanks to the guidance of a good witch (Glenda).  The majority of the claims our clients incur also have a successful outcome thanks to properly written coverage, a quality insurance company and a knowledgeable and service oriented insurance broker.  

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