Three Rules Of Insurance



Larry Harb:

Because at the end of the day, Larry’s Three Truths of Insurance—number one, purchasing insurance is never a high priority until you need it. I can’t tell you how many auctioneers I get, call me up on Thursday and say, hey, I got an auction on Saturday. Can you get me an insurance policy? The reality is, I hate doing that ‘cause then I didn’t have time to do my job. That’s sort of like somebody calling you up saying, hey, I’ve got a big estate. I want you to come out and sell it, and I want it sold by Sunday. Right? It just doesn’t happen. You need time to prepare and get things done. We need the same thing.

Most people hate paying insurance premiums until they have a claim. We all know that’s true. I put this up here because of my wife. My wife bitches every time she writes a check to the insurance company, okay? But, when we needed it and it was there, she was glad we had it. And that’s the point.


And, last but not least, if you don’t buy the insurance, the risk and exposure doesn’t go away. You’re just self-insuring. Understand that, okay, because that’s real important. Insurance is nothing more than a risk-transfer vehicle. That’s all it is. It doesn’t change the exposure. It just says who’s gonna pay the claim if there is one. Alright?