Think Twice About Buying Business Insurance from a Friend

We’ve all been there. You are having a seemingly routine conversation with someone about a range of topics when they say “Hey, I know someone who is a (fill in the blank).” It may be a real estate agent, automobile salesman or insurance agent. They are certainly trying to be helpful to both you and to their friend. The problem is, at times, it can lead to issues that can strain relationships.

Here are a few reasons it is a good idea to think twice about buying business insurance from a friend.

A Friend May Not Have the Necessary Experience

Referring a friend who is just getting started in business can be helpful, but it can also mean you are getting served by someone who lacks the expertise to help you efficiently. They may not be aware of the full range of products or services available or even have the experience insuring your type of business.

You May Not Want to Share Some Aspects of Your Business

Some business owners are not comfortable sharing details of their business with someone they know. They may feel like they are being judged or providing too much personal information. Dealing with an experienced professional at arm’s length whose only interest is assisting you can provide a much more solid foundation for conducting business.

Relationships Change

What happens if your relationship with the person changes? What if they leave their present company and move to another one? These can place a business owner in a difficult situation. After all, their first loyalty should be in doing what is right for their business. This can be avoided when you don’t conduct business with friends.

Exceptions to the Rule

There are some exceptions to the “friends” rule in business. A friend who is well-established in his or her industry, for example, or who has remained with the same organization for an extended period of time. This is obviously a knowledgeable, experienced representative who likely also knows some of the pitfalls of doing business with someone they know. This experience can be an asset.

Generally speaking, it is usually best to seek out your own professional when it comes to business insurance. While there is nothing wrong with asking the advice of friends or relatives, perform your own due diligence in finding someone who you can work with and who will work with you.

We invite you to learn more about our independent insurance agents and how they can put their experience to work for you. They represent you, not a specific insurance company, and can help you build a business insurance plan you can afford. Contact us to get started today.