Union Mutual of Vermont Companies issued the following announcement.
Today is #NationalInsuranceAwarenessDay! Most people know they need insurance – to transfer risk of loss, to secure a loan or mortgage, etc. But unless you or someone you know work in the insurance industry, chances are you may not know the ins and outs. That’s ok! That’s what insurance agents – and awareness days like today – are for, to support you through one of the most important financial decisions and transactions of your life.
Q: What is a mutual insurance carrier?
A: Union Mutual, as the name implies, is a mutual insurance carrier. Mutuals are not owned by a person or entity, they are owned by the policyholders who purchase insurance policies underwritten by the carrier. Mutuals are not stock companies and are therefore not traded on the stock exchange. They are governed by a Board of Directors (see Union Mutual’s under ‘Our Team’) and hold an annual meeting where policyholders are welcome to attend.
Union Mutual was founded by a group of neighbors in Montpelier, Vermont (where the Company’s headquarters remain today) who pooled their financial resources to protect each other from a fire loss. Nearly 150 years later, that basic system remains in place for neighbors all across New England and parts of New York and for many more causes of loss than just fire. It is truly a system of ‘neighbors helping neighbors.’
Q: Why should I choose to trust my property and other assets to an independent insurance agent?
A: In an age of big box stores and online shopping, it is more important than ever to support local businesses. Independent insurance agencies are, for the most part, small local businesses that employ local people, protect local people, and support local causes. These independent agencies are not tied to one large national “big box” carrier – they are able to tailor their policyholders policies by selecting the right carrier for the right risk at the right price. The policyholder’s premium dollars, in addition to the promise the policy represents: payment for covered losses (the transfer of risk), support the local agency, the regional carrier, and all the employees of both.
Additional Resources:
Insurance Journal: Today is National Insurance Awareness Day
Insurance Information Institute: National Insurance Awareness Day
Original source can be found here.
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