Precision Protection

Insurance, of course, represents the cost of doing business, but purchasing policies customized to your company’s specialties will help you make the most of those dollars.

In fact, the more specialized and more complex your business is, the more essential it becomes to maintain a precisely tailored insurance suite designed to accommodate the specific needs of your operation and your industry. If you’re outfitted with a broadly based, outdated, or off-the-shelf insurance package, there’s a chance you have holes in your coverage that could cost you dearly. “You might not even know how many ways you could get sued or have a loss,” says Mark Kulda, director of public affairs for the Insurance Federation of Minnesota, a trade association based in St. Paul.

The good news is that in today’s increasingly specialized insurance marketplace, there are products and services available for even the most unique types of commercial exposures. The trick is finding the best fit for your business—at the best cost.

“It’s important to find someone who specializes in your industry—either an insurer or an insurance broker,” Kulda says. “They’ll have a much better handle on your risk, they’ll know a lot more about your business, and they’ll have had previous success underwriting your type of operation.”

Erasing Uncertainty

Specialized insurance is anything but a new concept. Consider Owatonna-based Federated Mutual Insurance Companies, for example, which was founded more than a century ago to serve the specific needs of Minnesota’s farm-implement dealers, who felt that they were underserved by the large insurance companies of the day. In many ways, it’s basic supply and demand: As industries emerge, evolve, and encounter new exposures to risk, insurance providers develop industry-specific products and services to meet those unique marketplace needs.

“When you look at some of the specialization in the industry, in some respects, it’s evolved out of situations in which it’s been difficult for [companies] to find coverage,” says Michael Klein, senior vice president of specialty commercial for St. Paul Travelers.