Keven Moore: One and done works in sports,
but with insurance, it’s not the best strategy

The term “one and done” instantly stirs debate in the college basketball world, as the haves and have-nots take different sides.
 

As a lifelong Wildcats fan, I was a little leery when Coach John Calipari came to the University of Kentucky with the plan to use the one and done coaching philosophy to get us to the NCAA Basketball Promised Land. However, I quickly realized that Coach Cal and I wanted the same results. He has continued to earn my respect because he outworks his competitors while promoting the UK brand, kissing babies, and coaching and recruiting like a lunatic.
 

Now in only his third season coaching my beloved Cats, he brought home our 8th NCAA championship. In this case one and done has worked; it’s the rule and the coach has used it to its best advantage.
 

In the world of insurance, however, being a one and done client probably doesn’t serve you well. Shopping insurance carriers and agents is a practice that will negatively affect your rates as the insured. When you shop your insurance on an annual basis you build very little loyalty with all involved, and you receive very little loyalty back from insurance carriers or agents down the road.
 

The costs and time involved to quote your insurance is very time-consuming and takes up valuable resources, and when you leave the following year for a couple of nickels and dimes, people are quick to remember when your name comes back up in their database when you come back for another quote.
 

By adopting this practice, you are labeled as one and done in the insurance world, and underwriters are not so eager to sharpen their pencil to earn your business. So, you lose all the advantage.
 

Having an independent insurance agent that fits your commercial/business needs or even your personal needs (homeowners and personal auto) is a formula that works. As your insurance advocate, your independent agent earns his/her livelihood on commissions only, simply by finding you the best coverage for the best rates. Your loyalty is a priority. If you have a good agent, he/she will have your back and will quickly point out that price shopping is not always the best approach.
 

Obviously, cost matters and everybody involved knows it. But if you are always moving your insurance because of costs and don’t pay attention to the actual coverages, limits of liability and deductibles, you will get burned.
 

Remember it is not in an agent’s best interest to up-sell a few more dollars in premiums to make an extra buck or two. But what is in his best interest is developing a long-lasting, trusting relationship to continue to earn your on-going business.
 

When an independent insurance agent within one agency takes your business to an insurance market on your behalf, he/she has the leverage because of all the other business the agency writes with with them. That is called tradition. If he/she does not place your insurance with one carrier because he found better coverage and rates elsewhere, it does not affect you or your business directly, and you are not labeled as a one and done client.
 

Shoppin your insurance keeps insurance companies honest, and any good insurance professional will always encourage you to do it about every three years. Nevertheless a consistent relationships will pay dividends.
 

If you asked Coach Calipari why he has been so successful in his short period of time at the University of Kentucky, he would be quick to point out that he could not have done it without his circle of trusted advisers and the tradition of the program – or all those who helped him along the way.
 

Talk to any successful business owner, he/she will also credit employees, friends and trusted professional advisors who looked out for his/her best interests.
 

My best advice: Develop trust with an independent insurance agent and let him/her do the shopping for you so you can focus on building your business without this distraction.
 

Keven Moore is director of Risk Management Services for Roeding Insurance (roedinginsurance.com). He has a bachelor’s degree from University of Kentucky, a master’s from Eastern Kentucky University and 25-plus years of experience in the safety and insurance profession. He lives in Lexington with his family and works out of both the Lexington and Northern Kentucky offices. Keven can be reached at kmoore@roeding.com.