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Insurance Malpractice

June 25, 2009
Chris Garlasco, Owner & Managing Partner - Founders Insurance Group

Chris Garlasco, Owner & Managing Partner - Founders Insurance Group

Currently there is an insurance ad running on the television networks that boasts that you can “name your own price” for your insurance coverage. Then, presumably, the company will back the coverage into that amount. In my humble opinion, that borders on insurance malpractice. In recent posts I have spoken around the subject of price. Today is the day that I am heading straight to the heart of the matter.

Insurance is designed to financially protect everything that you have ever worked for or cared about. That’s the whole ballgame. Think about it. The extra hours that you put in at work to afford that car you always wanted, the labor of love that is your first home, or the lifelong planning for your last home. How about the sacrifices that you made in order to plan for the kid’s education or your retirement? Insurance is designed to protect the financial milestones of life, present and future.

This is serious business. Think about the list of life goals that I just mentioned. Would you plan for any of them lightly or blindly? Yet there is a group of insurance companies out there that are hoping that you will do just that when it comes to protecting them.

I often find myself defending against the misconceptions and misunderstandings of my chosen profession. For this group of companies however, there is no defense. Yes, the price of any product is important, but not more important than the product itself. Especially not in the case of protecting everything that you have ever worked for or cared about.

Recently, I had our staff call a few of these companies seeking quotes and information. In call after call, there was little discussion about coverage and even less conversation about my assets and liabilities. Advice was minimal and at times incorrect. Forget to ask a specific question? Try getting that same person on the phone again. When asked about an important coverage that the company didn’t offer, I was told that my current agent sold it to me just to increase the commission. Sadly, while many of these folks on the other end of the phone have an insurance license, they know very little about the insurance industry. Am I angry? You bet I am.

Thanks for spending your valuable time with me.

Chris Garlasco

7 Comments leave one →
  1. June 25, 2009 1:38 pm


    Thank you for this post. I wish it could be on TV for the whole world to see it. Those people that know I am in the insurance business are always beating me up about the price of their insurance. No one understands coverage. I find it so frustrating. Keep blogging good information.

  2. June 25, 2009 3:41 pm

    Dear Chris:
    Congratulations on a great post that tells it like it is! As a fellow Independent Agent I am with you 100%. I think this type of advertising only serves to further confuse the consumer who does not understand the complexity of their own insurance needs and does so in the name of “saving money”. This can be “penny wise and pound foolish”. Having a dedicated, proefssional Independent Agent who will be there to guide and assist them is critical.
    Keep up the good work!
    Best Regards,

  3. Ashley Whitney permalink
    July 16, 2009 9:11 am

    I’m reading through some of the back posts on Founders Group. (great blog by the way 🙂 This definitely strikes a chord with me.

    I tried clicking through to that particular company that says “name your price”, and went through the quote process. One of their questions is “what is your current liability limit”. I chose the greater than 100/300 option. When I received their “recommended coverages” quote, (even before I had the option to choose my price) it had 100/300 liability even though I specifically stated I had greater than those limits on my current policy.

    I wonder if their E&O coverage would pay the difference in the lawsuit judgement if I accidentally killed or seriously injured people in an auto accident.

    However, it’s times like these that I truly realize my value as an independent agent. Now we just have to communicate that to the public. Wish I had their ad budget 🙂

    • July 16, 2009 12:34 pm

      Thanks for reading Ashley!

    • Vanessa permalink
      July 17, 2009 9:38 am

      I just went to that company website and filled in the information like you stated and they did recommend 250/500 for me. I bet it has more to do with how you answer all of the questions, than how you answer that particular question.

      • Chris permalink
        July 17, 2009 1:50 pm

        Hi Vanessa;
        I am speaking of several carriers in this entry so I am not sure which company you went to. If you give me some more info, I would be happy to respond further. Did they ask you what assets that you had to protect? How did they arrive at a recommendation?



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