5 Things to Consider When Choosing an Insurance Broker
An insurance broker is an individual or company that negotiates between the buyer and the insurance company to shop for, find and buy insurance. They are not regulated but require a license to sell insurance and are subject to other restrictions imposed by the states in which they practice. They provide services to both individual and business clients and are responsible for notifying companies of the insurance policies they sell. In this article, we will assist you in making an educated choice when choosing an insurance broker, helping to make your business with them a success.
1. Licensing
Ask for a copy of the license to sell insurance. It will ensure that the company is legally allowed to sell you insurance. Any company may act as an insurance broker, but if they do not have a license, they will not be able to sell you any policies. Consider checking with your state’s Insurance Commissioner to ensure that your broker has a valid license before signing with them. So long as you have proof that your broker is licensed, you can rest easy knowing that they are officially permitted to do their job.
2. Professionals
Above all else, seek out an insurance broker with reputable business history. Verify that they have not engaged in any major complaints or issues in the past. An insurance broker should be familiar with the industry and its ins and outs. Do not sign a contract for an amount you do not have to pay; you could lose your money or face huge fines if you get caught billing for more than agreed upon. Ask for references or a list of clients you can speak to about the company. It will help you confirm that your broker is properly licensed and professional in their dealings.
3. References & Associations
Look through your prospective insurance broker’s various affiliations and references, ensuring they are up-to-date and complete with all their relevant information. They should update their website regularly with the appropriate information, not filled with broken links or other errors. Contact every person listed to confirm that they have been satisfied with their dealings with the company. Also, contact any companies or other brokers they have worked with to determine whether they were satisfied with their experiences and whether the company managed to fulfill its obligations promptly.
4. Customer Service
When you call your insurance broker to set up an appointment, ensure that customer service representatives are polite and professional. They should be well-educated on the market and have no difficulty answering questions relating to their ability to do their job. You should be treated fairly at every stage of your dealings with them. Please give them the same respect that you would any other business or person and keep your concerns to yourself unless there is a problem.
5. Experience
An insurance broker should have experience in the market and be familiar with various regulations. They should also be able to offer you a large number of policies from different companies, giving you enough options to decide on one that is right for your business. If they are not flexible enough to handle these tasks, they may not be reliable enough for you to work with. Insurance brokers are paid by commission, so they have no reason to work hard unless it benefits them financially.
Finding a good insurance broker is not difficult. They will be able to find you a high-quality company and even negotiate for you when rates go up over time.