Broker versus Agent
Insurance agents work for a company. So working in the best interest of his company he will see that you do not switch your carrier. A broker on the other hand, works as a go between business and insurance companies. He will provide you with number of quotes from different insurance companies, so that you can compare them and get the best deal.
Brokers work for different types of insurance, such as life insurance, health insurance, travel insurance, business insurance.
Why use an insurance broker?
An insurance broker can save a lot of time by providing you quotes from different insurance companies at the same time. An insurance broker is most advisable for small business where they do not have enough human resource to do the research work and get quotes from good companies.
A broker also helps you comply with federal legislation including the Health Insurance Portability Act which deals with the standardization of electronic health care transactions and the privacy of health care data, and the Employee Retirement Income Security Act which deals with the minimum pension plans in private business. Your broker will make sure that you comply with such state and federal laws, violation of which may lead to severe consequences for your business.
The best reason for using the service of a broker is that you do not have to pay for them. They get commission from the carrier.
What Services does an Insurance Broker Provide?
An insurance broker has many functions. His prime job is to conduct research and then provide insurance customers with different insurance plans for their business. He will assist employers on worker’s compensation issues. He will navigate through the claim filing process, thus making it easy and quick. He will facilitate communication between the employer, the claimant, and the insurance carrier. Lastly, he will also help assess the cause of injury and discuss ways so that the same kind of injury does not happen in future.
Who is a good broker?
The best broker stays with the same insurance company. Whenever he gets new business for them he gets paid high commission. So if your broker keeps on changing your insurance carrier, you should question him the reason for doing so.
A broker has to work in the best of your interest. He should be polite, friendly and professional. He should be accessible whenever you need him. If you are looking for a broker then see that you check it out with your local chamber of commerce. Do speak with some small business owners so that you get references or tips on how to find a qualified insurance broker.
Finding the right broker is very important for your business. The success of your business depends on the broker you choose. He is the one who can guide you business’s fiscal health and long-term goals.