Posted On: November 4, 2008, 5:44 pm CST

Posted By: Compman

With the economy tightening, I am seeing more and more of my clients trying to squeeze that extra dime out of their insurance costs. Penny wise and pound foolish most of them are. I have business owner's wanting to lower their BPP in half, or drop it all together and just get liability to satisfy the landlord. I advise that they will lose their loss of income coverage as well and they don't care. I even had one personal lines client a few months ago add 16yr old twins to his auto policy. He got the bill for it a little later and called and was irate over the additional costs. I advised that by adding two 16yr olds, the risk the insurance company was taking was incredibly higher than before, justifying the increase. His response was to cancel his personal umbrella to save $400 a year. I pleaded with him to keep the umbrella since now is when he needed it even more since his 16yr olds were now driving. I couldn't convince him. To top it all off, this guy is a professional that makes a good low six figure income. Not only did I have him sign the cancelation request for the PU, I had him sign a statement that I strongly advised him not to cancel his PU and to not only keep the umbrella, but raise the limits as well. So now when one of his snowflakes gets into a big accident, he can't come back and put the blame on me.