We buy insurance because we want to be financially covered if we suffer a loss, or if we cause someone else to suffer a loss.
If we accidentally damage someone else’s property, or we injure them, we want help paying for those damages. If our house burns down we want to build it back again. If our stuff gets stolen we want help replacing it. If we get sick we definitely need help covering expensive medical bills. And so on.
We pay our insurance premiums every month or year so that if the “If” happens, we’re covered. Someone is there to help us financially.
The last thing we want is for that ‘someone’ – the insurance company – to start giving us a hard time and getting all funny about paying us what is rightfully ours.
We pay our premiums. We have a legitimate claim. We want our money. That’s what insurance is all about so there should be no unnecessary delays in paying out.
The ‘Promise To Pay’ means everything
William K. Austin, one of the ‘greats’ of the insurance industry, said it best: “The quality of any insurance policy is measured at the time of loss settlement.” In other words, you can tell how good your insurance company is when it comes time to settle a claim.
Gerald Hadeed founded The Beacon Insurance Company (Beacon) on a promise, which became his motto: “Insurance is a promise to pay. At Beacon we keep our promises.”
At Beacon, we consider it our duty to quickly and efficiently pay out on a legitimate claim.
Is insurance about premiums or claims?
The way some insurance companies operate, you might think insurance is all about collecting as many premiums as possible – but it’s not.
The actual insurance product is the claim. That’s why insurance started all those centuries ago – so there was a pool of money available when a member suffered an accident or a loss and needed financial help. Insurance spreads the risk among many so that no single member loses everything.
Of course, premiums are essential, otherwise money wouldn’t be there to pay the claims. But the goal of collecting premiums is to be able to pay for legitimate claims.
And claims have to be legitimate. When someone makes a false claim, it’s your money they’re after.
That’s why there’s a whole department in every insurance company where experts deal with fraud and false claims on a regular basis. Sad, but true.
They protect the pool of premiums so if you suffer a loss you can be assured that your money is there and you’re financially protected.
In this business, you’re only as good as your promise
After a big thunderstorm, the hill behind John’s house came down and busted through the back wall. Part of the house was covered in mud and debris – and quite a few valuable contents were destroyed. Not to mention the invasion of creepy crawlies.
John’s broker had part of his Home and Contents insurance with Beacon, and part with another insurance company. Beacon immediately sent someone out to assess the situation. This was followed up with a quotation for repairing the damage, and Beacon then wrote a cheque out to John without delay.
The broker couldn’t get any response from the other company, and this dragged on for months. After much stress, anxiety and anger, John gave up trying. He closed his account with them and now insures everything directly with Beacon – Home, Contents, and two cars.
In this business, you’re only as good as your promise.
Now you know
If you were ever confused about insurance, and wondered what the real purpose of the industry is, well now you know.
Insurance exists to help you recover from some sort of loss, or to help you compensate someone else if your actions cause them to suffer a loss.
If you’d like to know more about Beacon you can always contact our Team directly during office hours.
To find out how the lights of many beacons guided Aziz Hadeed, and how Beacon was born, check out Beacon’s Story.