I am on the road a lot. Between seeing clients and driving my kids around I get around the Houston area. Sometimes the things I see just baffle me. People that are trying to save time or they are running late do things that I consider stupid. Yesterday while driving my kid to kindergarten a black mini van ran the stop sign in front of the school and then flew through the remainder of the school zone. He saved maybe 10 seconds. But he could have gotten a ticket or killed a kid. Worth it? No. Today a lady couldn’t be bothered driving the normal loop of the drop off lane and cut through the parking lot. She saved 2 seconds. This doesn’t look like a big deal, but what if a kid had been walking between the cars she cut through and she hit him. Is the chance of that worth saving 2 seconds. Not in my book.
How does this rant relate to insurance? People are always trying to cut corners to save a buck. I have talked to people with $200,000+ in equipment in their building and they don’t insure it. It’s not worth it they say. No one can steal that stuff. Can it burn? Can a tornado destroy it? Can you afford to replace it if that happens? Another is when people don’t carry workers comp. Their reasoning is my employees will never get hurt. Nothing ever happens. Are you willing to bet your life savings or your entire company on that? And my favorite is when I run across someone willing to lie on an application so they can get a cheaper rate. Commit fraud much? Not disclosing hazards or exposures to save a few bucks will usually come back to bite you one day. Not telling an insurance company that you have a swimming pool with a diving board, a pit bull, a trampoline, and that you run a daycare out of your house might cause a problem when you have a claim. And that goes for commercial insurance as well
So what’s the moral of my rant: don’t be penny wise and dollar foolish.
Don’t risk $100,000 to save $500