Insurance Broker

Broker Versus Agent

Insurance agents work for a specific carrier; insurance brokers work as a go between for businesses and insurance companies. An insurance agent is vested in the interests of their own company and will do everything possible to keep you from switching carriers. A broker can provide you with a number of quotes from different insurance companies for comparison, ensuring that you receive the best deal possible.

Brokers can deal in many different types of insurance including: health insurance, life insurance, travel insurance, business insurance and home insurance.

Why Use an Insurance Broker?

Many small businesses do not have a separate personnel or human resources department. If you are a small business owner, you most likely wear this hat yourself. An insurance broker can save you hours of painstaking research by providing you with a variety of quotes at the same time.

The broker can also assist you in complying with federal legislation, including the Health Insurance Portability Act and the Employee Retirement Income Security Act. The Health Insurance Portability Act deals with the standardization of electronic health care transactions and the privacy of health care data. The Employment Retirement Income Security Act deals with the setting of minimum pension plans in private business. Incompliance with federal, state and local regulations can result in serious consequences for your business. He can help to make sure that you are operating within all applicable laws.

Perhaps the best reason to use this type of insurance salesman for your business needs is that their services are free. Brokers receive a commission from the carrier, so there are no out-of-pocket fees for you.

What Services Do an Insurance Broker Provide?

The main duty of an insurance broker is to research and provide you with a number of different insurance plans for your business. An insurance broker will also assist you in dealing with worker’s compensation issues. They will help you navigate through the claim filing process and facilitate communication between you, the claimant and the insurance carrier. In addition, your insurance broker should help you ascertain the cause of the injury and discuss ways to prevent the same type of incident from occurring again.

What Makes a Good Broker?

If your broker continually switches your insurance carrier, this may be a red flag. These salesmen typically get a higher commission for bringing new business to insurance companies. If you find yourself in this situation, you may want to question your broker regarding their intent. Unless the savings are significant, it is generally best to stay with a steady carrier.

Like any service provider, a broker should be courteous, friendly and have your best interests at heart. Professionalism and accessibility are also important. Contacting your local chamber of commerce, speaking with other small business owners and word of mouth referrals are all viable strategies for finding a qualified insurance broker.

Finding an insurance broker that is right for your business can have positive consequences for your company’s fiscal health and long-term growth.

Related Insurance Links

• State Farm Insurance
• Progressive Insurance
• Business Insurance
• Insurance Online
• Medical Insurance