Like many novice business owners, you may have limited knowledge of insurance coverages and their costs. Accordingly, to get the best coverage, rates, and services, you need to enlist the help of the right business insurance broker.
A myriad of brokers and agents sell insurance to small business owners, so do you know which is the right one? Our post will outline some steps you can follow to find an insurance professional who’s right for your company.
Agent or Broker?
At the outset, it’s critical to note that insurance brokers and insurance agents are not the same things. Simply put, agents are only going to seek coverage from one specific carrier, while the broker will seek insurance policies from multiple carriers. That might not always be the case, but it is the general rule. On the other hand, brokers will more likely find you the best coverage for your specific needs as they will have access to a larger array of potential policies.
Note that most business owners can obtain the policies and service level they need from an insurance broker or agent. Meanwhile, companies with complex insurance requirements or unique hazards may be better served by an insurance broker.
Personal or Commercial
You may find a reliable insurance broker or agent, but they may not necessarily have the practice in a commercial insurance environment that you need. Always be cautious and ask your agent or broker if they have experience in commercial policies and require proof of their previous experience. Not the experience you were looking for? Don’t worry; they can still help you find an insurer that can meet your needs.
Any unique needs your insurers should know about?
Most business owners will need similar insurance policies to cover standard risks, like general liability insurance. According to Insuranks, many businesses will have special and unique risks for which they may need special policies. For instance, you may need coverage against the risk of data breaches if you’re a software developer or against intellectual property infringement if you’re a creative business.
You need someone who’s an expert and risk management, but more than that, you need someone who understands your niche. A construction business, for example, will face the same risks as an IT company, yet the exposures aren’t identical. If you’re running a construction business, you want someone who knows exactly what type of policy you need and who will provide professional advice on how to handle specific risks related to your niche.
Making Your Choice
Selecting the right insurance broker is like choosing a business partner. You need a professional you trust to have your best interest at heart while also having the experience needed to understand and protect your unique business needs.
If you’re not satisfied with the service your insurance agent is providing, speak up. Be transparent about what you want. If the insurer fails to respond to your needs, and you’re still unhappy, you can always find another.
Ross is known as the Pambansang Blogger ng Pilipinas - An Information and Communication Technology (ICT) Professional by profession and a Social Media Evangelist by heart.
