Growing up we were all told “don’t put all your eggs in one basket” This phrase is commonly (and some might say, incorrectly) attributed to Miguel Cervantes (in Don Quixote), but some sources have reported its usage as early as the 1600’s. A similar proverb dating back to 1617 reads “he is a fool which will adventure all his goods in one ship”
Is it a Coincidence that expressions like this date back to the beginning of what is considered the modern insurance era? Probably not.
Business owners were concerned with loss of their goods that were loaded on ships to be transported to customers. The risk of losing everything in the event of a ship sinking or captured was too great. One solution was to use extra ships and spread the load out. That way if a ship was lost you wouldn’t lose everything. It was a costly solution that still carried a fair amount of risk.
In the late 1680’s Edward Lloyd opened a Coffee house on Tower Street in London. It soon became a popular spot for ship owners, merchants and captains and thereby a reliable source of shipping news. This was the birth of Lloyds of London and the first marine insurance market.
Generally putting all your eggs in one basket would be risky decision. You won’t invest all your money into one stock would you? But with insurance, it actually makes sense to put all your policies in one broker’s office.
Advantages of placing all your coverage in one brokerage:
- You’ll develop a strong relationship with your agent. They will get to know you, what you need to protect and help identify risks that you may be exposed to.
- You’ll benefit from a broker who access to a wide variety of insurance markets to ensure that you are getting the right coverage for your needs rather than just another cookie cutter policy.
- You could benefit from decreased deductibles in the event you suffer a claim that involves more than one of your policies. For example a hail storm that damages both your home and automobiles.
- You’ll benefit from increased discounts from having multiple policies insured together
- You’ll have a trained licensed insurance expert working for you to aid you through the process of setting up new coverage, reviewing current coverage, or going through the claims process.
- You’ll be treated as more than just another policy number. We understand that without our clients we wouldn’t be where we are today.
- Reductions in the number of companies that have access to your personal information.