Agents work for insurance companies but brokers work for their clients. Their purpose is to seek out adequate coverage at an affordable price rather than to sign up as many people as possible for a specific insurance company. Brokers help their clients to save time and prevent common mistakes like accepting policies that result in being over or under insured. They do all they can to make certain their client is not paying more than necessary, but there are things employers can do to make their work even more beneficial to their business. Here are three things you should ask your broker about to ensure you are choosing the right policy.
Your Level of Risk
Group insurance brokers offer expert advice for many different types of insurance. Take time with the broker to discuss all the insurance needs of the company. Have the broker perform risk assessments and ask for suggestions that could help to lower premiums.Brokers do not only work in the commercial insurance field and they may have options that would be more affordable to employees as individuals rather than in a group policy. Investing an extra hour or two each year working with the broker could save employers and their employees a substantial amount of money.
Your Policy Options
There are a variety of insurance programs and employee plans for employers to consider. An example of this is The Small Business Health Options Program (SHOP) for health and dental coverage for companies with less than 50 full-time employees. Employers can still use group brokers to assist them when they choose a plan from this type of marketplace. Review all of the possibilities available for each type of insurance needed and choose a broker that works with those programs or is able to offer options that are equally affordable.
Industry Specific Needs
Certain industries have higher risks than others or unique insurance needs because of the type of work they perform. It is often helpful to choose a broker that is familiar with the specific industry to guarantee they understand its needs and have the resources to get their client the best insurance coverage available.
Brokers work for business owners, but they are not affiliated with insurance companies and do not charge the business a fee. They add on a small commission charge when a policy is purchased. This makes them one of the most cost-effective options every business owner has. Their ability to scour the market, work directly with their client and continuously reassess all needs makes them invaluable to all employers. Brokers can only work with companies that are located in the state where the broker is licensed. All licenses are kept on file with each state insurance commission. For more information about working with an insurance broker, contact a business such as Health Shop Inc.