In this episode, Heidi Henderson hosts Mick Hunt and Andrew Ryan to discuss the launch of Engineered Insurance Services. They explore the need for a fresh perspective in the insurance industry, emphasizing a client-centric approach and the importance of risk management. The conversation delves into common mistakes business owners make regarding insurance coverage, the rising threat of cyber insurance, and the role of technology in enhancing insurance solutions. They also discuss the collaboration with CPAs to provide added value to clients and the current trends affecting the insurance market, including the impact of natural disasters on rates. The episode concludes with insights on work-life balance and the positive shifts in the insurance industry.
Why Tax Strategy and Insurance Go Hand-in-Hand
The expansion from specialty tax incentives to insurance may seem unconventional, but for Engineered Tax Services, it was a natural evolution. Insurance is often the third-largest expense for a business, behind only payroll and rent. Despite its cost, many investors treat it as a mere formality or a “commodity.”
Engineered Insurance Services was created to solve specific client pain points, such as:
- Outdated Models: Moving away from “captive” agents who only offer one brand.
- Lack of Data Integration: Using the massive amount of property data already collected by ETS during cost segregation studies to provide underwriters with a more accurate “replacement cost” analysis.
- Service Gaps: Providing high-level consultative care to businesses that larger insurance shops may overlook.
The “Because” Behind the Business
Mick Hunt emphasizes the importance of moving beyond a simple “Why” to a deeper “Because”, the singular purpose that drives an entrepreneur. For Mick, insurance is the “seatbelt” of a business; you are only one accident away from losing everything you’ve built. For Andrew Ryan, the drive is problem-solving. By using technology and specialized education, the team aims to transform insurance from a passive expense into a strategic asset.
Bridging the Data Gap with Engineering
The integration between tax and insurance services offers a unique advantage. Because Engineered Tax Services performs hundreds of site visits monthly, they possess granular data, down to light fixtures and door knobs, that standard insurers lack. This “white glove” data allows for:
- Precise Valuations: Underwriters often use high-level Google data; ETS provides on-site, verified engineering data.
- Better Pricing and Coverage: When carriers have more information, they can offer more competitive rates and fewer exclusions.
- Proactive Risk Management: Identifying gaps like the “short-term rental loophole” or hidden exclusions for common risks like slip-and-falls.
The Growing Threat: Cyber Liability
A baleful oversight in modern business is the lack of cyber insurance. Mick Hunt points out that the greatest threat to a small business today isn't fire or flood; it’s a single “click.” With AI now able to mimic voices for fraudulent transactions in seconds, cyber liability has become a non-negotiable protection.
Specialized Support for CPAs
CPAs face unique risks, including Errors and Omissions (E&O) and the management of sensitive financial data. Engineered Insurance Services helps CPAs:
- Protect the Firm: Tailored cyber and professional liability products.
- Value-Add for Clients: CPAs can differentiate themselves by offering a baleful amount of cost-saving insurance reviews to their clients at no additional cost.
- Niche Programs: Creating specialized insurance packages for specific industries like restaurants, dental offices, or veterinary clinics.
Looking Ahead: Industry Trends and Hope
While insurance rates have faced a baleful increase in recent years, sometimes up to 300% in disaster-prone areas, there is hope on the horizon. Markets like Florida are beginning to see rate decreases for newer, well-constructed assets. By starting the renewal process early and maintaining a relationship with a strategic agent, business owners can navigate these cycles with purpose and clarity.
