What do insurance brokers do to benefit your business? Just like insurance agents, they mediate between insurers and businesses seeking insurance. Both can help you obtain coverage.
However, there’s an important difference: insurance brokers actually represent you. Agents, on the other hand, represent their companies.
If you want to work with someone who’s actually looking out for your best interest, learning what insurance brokers do is a good first step. Here are just a few things they do.
Insurance Brokers Help You Understand Risk Protection in Your Industry
Your insurance broker can tell you how each policy will treat claims and calamities, helping you to get full benefits when you file. Your broker can help you take preventative measures and avoid risks that insurance might not cover.
They can help you understand your business's liabilities. An experienced insurance broker also knows how to best mitigate the risks particular to your industry, location, and budget.
For example, insurance policies may or may not contain an "act of God" clause. This clause actually protects insurers from having to pay out on damages caused to your business by natural disasters like floods, hurricanes, or earthquakes.
Most of the Metropolitan New York area has a very low incidence of damage resulting from tornadoes, with an average of 1 tornado watch a year. The 2010 tornadoes affecting Brooklyn and Queens, however, reminded inland businesses that policies may not pay out on natural disasters. Insurance brokers can tell you the best way to protect your business from the unexpected.
What Do Insurance Brokers Do to Help Clients Make Informed Decisions?
Insurance brokers work for their clients and help them make informed decisions about the type of insurance that best fits their needs. They help their clients understand how much insurance they should purchase to cover the risks associated with their industry and particular circumstances.
Insurance Brokers Custom Design Insurance Packages
If your company develops software, you surely wouldn’t want to shell out for the same coverage as a big business in the construction industry. Businesses offering physical labor services have more claims for on-the-job personal injuries and property damage than software developers.
Expert insurance brokers can provide your business with quotes for different options. By looking at options from different insurers you can choose a plan that fits your budget and situational risks.
Insurance Brokers Help Understand Conditions, Benefits, and Exclusions
The right conditions, benefits, and exclusions of a business insurance plan can prevent a business from having to file bankruptcy when the unexpected happens. A trained, experienced insurance broker can help you understand policy conditions and exclusions.
A broker can provide you with the insight to choose the best plan to fit your liability needs and budget. In addition, he or she can also help you and your HR team simplify benefit management - a time-consuming challenge in any big business.
What Do Insurance Brokers Do to Negotiate the Best Rates?
Depending upon your company’s history and required coverage, your broker may have options to negotiate for lower rates on all or part of your corporate insurance plan. Big businesses, like yours, have a special advantage because large group discounts may apply. Your insurance broker will know how to put together protection packages to take advantage of them.
Insurance brokers also keep up-to-date on incentives for loyal businesses. Many plans offer premium rate reductions for repeat customers. A responsible broker will advise you of additional discounts and advocate to get you in on them.
In addition, you may qualify for special discounts for improving workplace safety and minimizing claims. Brokers can help your business leverage safety training, signage, existing infrastructure safety features, and renovations that further reduce your overall premium cost.
Now you know the answer to the question, “What do insurance brokers do?” You might be thinking about finding a local insurance broker. A local broker cares about your business as much as you do because advocating for it keeps him or her in the loop.