Okie businesses need a "better understanding" of insurance industry, state commissioner says

Oklahoma’s small businesses need to develop a better understanding of their insurance and how it can effect their business, the state’s insurance commissioner said recently.

Speaking in Norman, state insurance commissioner Kim Holland said most of the state’s small business owners don’t really understand their insurance or how it works.

“The number one complaint,” she said, “is a due to individuals not understanding their insurance. Whether it’s an individual or a business, it’s a flat lack of understanding that creates more problems for you and later for us.”

As consumers of insurance Holland said business owners should “have a solid understanding” of all types of their insurance, including:

• Workers compensation insurance

• Business property and liability insurance

• Commercial auto insurance

• Group health insurance

• Group disability insurance

• Group life insurance

• “Key” person life insurance

• Home based business insurance.

Additionally, she said, the biggest issue for businesses is the high cost of health insurance.

“The cost of health insurance is the number one issue for many,” she said. “It’s beyond the means of many of our small businesses.”

Because many of the state’s smaller businesses are “self sustaining” and are not making large profits, they are priced out of the health insurance market, she said.

“You have to make a lot of money to afford the yearly costs,” she said.

One way to help, she said, was with the state’s O-EPIC plan.

That plan — where the state helps pay a portion of the business owners’ insurance costs — applies to companies which employ 50 people or less and meet certain pay level requirements.

To qualify for the plan businesses:

• Must have fewer than 50 employees

• Be located in Oklahoma

• Offer an O-EPIC qualified health plan

• Contribute at least 25 percent of the premiums for eligible employees

• Complete the plan application.

“It’s a wonderful program,” she said “And it can help make the difference.”

Legislation to expand the program to include companies which employee 250 or less is currently awaiting Gov. Brad Henry’s signature.

A second issue, which Holland says is vital for the business community, is a better understanding of the insurance industry, the types of insurance and how it affects consumers.

“The goal is to educate small business owners and managers about the insurance industry and insurance issues,” she said.
That outreach has been a core part of Holland’s tenure as commissioner.

Since 2005, she’s hosted a statewide summit on the high cost of health insurance, a climate and loss mitigation conference, increased the department’s outreach efforts and launched an InsureU Web site to better explain the insurance industry.

Appointed in January 2005 by Gov. Henry as a replacement for former commissioner Carroll Fisher, who was forced out of office, Holland was elected to her first term as commissioner last year.