Insurance.

• Author: Lebeda, Guy
• Position: Brief Article

What You Don't Know Can Hurt You

Keeping up with constant changes to the insurance industry is almost as difficult as staying abreast of changing tax laws. But like taxes, insurance is an issue that if not fully investigated and understood, can end up costing Utah consumers and companies thousands of dollars in lost opportunities and wasted revenue.

Getting Down to Business

"What you don't know can hurt you," says Rob Wiseman, an agent with Provo-based Wiseman Insurance Agency, "and one insurance product a lot of businesses don't know about is Employment Practices Liability." This type of business insurance covers lawsuits from disgruntled employees claiming discrimination on the basis of age, race, sex, sexual harassment, or improper firing. "It's not brand-spanking new, but it's become a lot more available in the last year or so," says Wiseman. More businesses are buying this type of coverage as it is becoming more affordable for smaller businesses as well.

However, Wiseman says that insurance costs for all types of insurance are going up. "That's because when a business buys insurance the insurance company, in order to offset some of its risk, turns to a 're-insurance' provider that sells additional coverage on a portion of that risk. Wiseman explains that because re-insurers have been hit heavily with claims for such things as earthquakes and tornadoes in the last couple of years, they're implementing big rate increases that are passed to the insurance company and eventually to the business owner.

Wiseman's advice to the business consumer is, "Buy as much coverage as you can with the highest deductible you can afford. That way, you can cover the small claims yourself and avoid unnecessary rate increases."

Health Planning: Uniquely Utah

According to Suzette Green-Wright, health insurance director for the Utah State Insurance Department, Utah has more small businesses than the rest of the country so access to small employer group insurance is critical for the state's population. In addition, Green-Wright notes, "Because we tend to have more children per family than other states, Utah allows parents to carry health insurance for their dependent children up to age 26."

"But" she remarks, "people tend to believe that they don't need insurance or, if they are insured, they assume it will cover everything that will ever happen to them." Insurance is the calculation of risk, for the purpose of limiting financial damage if a catastrophic illness...