Business insurance coverage is the most important purchase you will make as a business owner, and shopping for this valuable protection involves a process of evaluation, research, and comparison. Working with an insurance broker, and taking advantage of their knowledge and experience, can make the shopping and selection processes easier and help you avoid unnecessary costs.
What is an Insurance Broker?
There are two kinds of insurance brokers, or agents, namely captive and non-captive, also known as independent insurance brokers. While captive brokers are committed to selling insurance for a single carrier and must put the insurance company’s interests first, an independent insurance broker offers multiple policy and product lines from a broad selection of insurance companies. An independent insurance broker puts the customer first, offering up their experience and resources so that the customer can get the best coverage possible to suit their needs and budget.
Reasons to Use an Insurance Broker
Many insurance companies have encouraged those shopping for insurance to “go direct” and save money by cutting out the middle man. However, there are several reasons why using an insurance broker to assist you in navigating the shopping process could be a valuable choice.
First, cutting out the middle man doesn’t save as much money as you may think. In fact, broker pricing is often much better than direct insurance pricing. Insurance companies provide brokers with lower rates because brokers are professionally trained to accurately assess risk and to help their customers choose a policy that adequately insures them. Businesses purchasing insurance through a broker will naturally present a lower risk because of the broker’s skill at evaluating businesses.
Shopping for business insurance through a broker also offers a smoother, easier process. Brokers usually offer online as well as phone service, and generally are more proactive about engaging the customer after they have received their initial quote.
Getting a speedy quote after your initial consultation is more consistent with insurance brokers, and even mid-term changes get a quick response. Brokers also have the knowledge and experience to make their suggestions more useful to you as a consumer, saving time and money in the process.
Insurance brokers are trained to handle all aspects of insurance. They have the experience and knowledge to evaluate your business and access to a wide variety of policies for comparison shopping. Both the insurance company and you, the customer, will have peace of mind knowing that everything is covered.
Finally, insurance brokers offer customers a stronger feeling of security when it comes to the safety of their personal information. Their ability to deal with specific insurance questions one-on-one is also a contributing factor to the trust that customers feel when working with an insurance broker.
Insurance brokers are uniquely equipped to save you money when shopping for business insurance. Even after your policy is purchased, brokers can offer you the peace of mind that knowledge, experience, and trustworthiness provide. Though direct-sales insurance has its merits, shopping for your business insurance coverage, and managing it afterward, will be a smoother and overall more beneficial experience when it is done with an insurance broker.