What is an Insurance Broker?
Insurance broker is a trader that works for his clients to help them get better quotes. He can affiliate with multiple companies which facilitates him to obtain multiple quotes and chose the one best fits his clients’ budgets and needs.
Unlike insurance agents that represent the insurer, brokers work mostly for the advantages of their clients. Their primary mission is to seek and present the best insurance solutions to meet the needs of their customers that mandate them for this purpose.
That is, a broker manages his customers’ portfolio and defends their interests from insurance agencies. His main mission is to offer his clients the best coverage at the most favorable terms available on the market, while at the same time, identifies potential risks and offer customized hedging solutions.
7 advantages of having an insurance broker on your side
- Assess your insurance needs
This advice is even more important if you need the insurance for your business. Being an entrepreneur is not always easy to determine the risks involved in your business: theft of equipment, accidents, office damages, and others. The insurance broker, being a professional with years of experience, can help you review all of the risks related to your business and industry and come with a solution plan.
- Take advantage of Competition
The insurance broker is eligible to deal with many insurers. So he can solicit and quickly get multiple offers, and possibly get a better price than if you would speak directly to the insurer. The chance is even higher if he has experience in the business and insurance companies love working with him.
- Standardize your submissions
Like physicians can understand the language of pharmacists, the brokers know the jargon of the insurance companies; it is their job. Therefore they are better capable of negotiating your insurance policy. When submitting an application, they may take care of transmitting the same information to each insurer in their network, in order to better compare offers thereafter.
4. Understand the Offers
When you receive the offers from insurance companies, it is important to compare apples with apples, oranges with oranges. Some potential buyers however limit themselves to only consider the price, regardless of the protections associated with it. The broker is there to identify exclusions and limitations of your insurance policy.
- Find the right insurer for your needs
Each insurer tends to specialize in a particular niche; it is important to target companies who are familiar with your industry. In addition, you need to be aware that certain benefits are not offered by all insurers. An insurance broker will identify the right insurer for you by considering each of all offers he has received.
- Be Patient to wait for the right insurer
Some products are more difficult than others to be insured, because of the risks they present: catering, condominium associations, some types of construction services, and others. It may take a while to find an insurer and negotiate the policy. If necessary, an insurance broker can find you a “sub-standard” insurer until you can migrate to a better kind of protection.
- Obtain independent advice
It may come to a point you don’t know which way to go; you then need a professional advice. Unlike an insurance agent, a broker works in favor of his client. He will give you good advice. By his middle-man position, the broker is in the ideal position to offer independent advice in order to choose the best policy.
- Have Professional liability
Regardless of how careful you can be, sometimes problems happen. If something goes wrong, the broker can turn to the insurance company to defend you. He will have to work for himself and for you. He has every interest to serve you: it is his reputation that is at stake.
- Have flexibility
As mentioned above, the broker can work with many insurance companies; he is not limited to a single insurer. Indeed, when a new product appears on the market, the broker can react very quickly by going directly to the insurance company offering the product. It is the same; he will keep you update of new products or tools, giving you more flexibility and possibly more advantages.
- Develop a relationship of trust
A broker with bad reputation has little to no chance of being success in this business. He needs to create a relationship of trust with his clients. He is a professional at the service of his customers. He can come to your house or business when something is unclear or difficult to explain on the phone. He offers changes in coverage according to the market trend.
Having an insurance broker on your side is very advantageous. Not only can he advise you independently, he has the freedom to negotiate the insurance policy that really meets your needs, no matter the insurer. He helps you indentify risky points in the contract and choose the policy which is best for you.