Buying an insurance policy off-the-shelf is probably not the best solution. Even though there may be certain moments when you’ll just have to take the risk, it is still better to go with a customized policy which will fit your needs best. However, in order to get the best one you can possibly get, you will need to hire a reliable team of professional insurance brokers and agents to help you along the way.
Difference between an insurance broker and agent
Both of these sell insurance. In other words, they have the role of intermediaries between you and your insurers. Both of them are legally forced to help you get the appropriate coverage at a reasonable price and both have a license so that they can distribute the type of insurance that they are selling. And most importantly, they need to conform to the regulations enforced by the insurance department in your country. The key difference is in whom they represent. An insurance agent (or captive agent) usually works for one insurance company and can sell the insurance policies of that company only. On the other hand, an insurance broker can work for a couple of insurance companies and that gives him the possibility to compare different policies.
Tips to find good insurance advice
Before committing to a team of insurance brokers and agents, you should first ask yourself about the type of services you would like to get from them. Take into consideration the type of business you are running. If you are a small business owner, looking for an agent or a broker with experience in small business, will be the right choice. Getting different types of insurance like health insurance, life insurance, disability insurance, etc. from the same agent will definitely help you to reduce the coverage gaps. Also, it is advisable to have a regular review of your policy just in case there are some changes. A referral from a trusted resource can be a good way to find the perfect team. This way, you will get to know better the service that is offered and its quality. You should also look for an agent or a broker that has the right professional qualifications to deal with your requirements.
Why do you need a good team of insurance brokers and agents
Knowing that you are receiving reliable advice and service when working with a team of experts will give you peace of mind. Your chosen team of insurance brokers and agents will help you choose the policies that best suit your needs. In case of a loss, they can also give you advice on which steps you need to take to have the claim paid, so they can guide you through the confusing and stressful process. Not to forget that the Code of Ethics obliges them to maintain your privacy so all your information will be completely confidential. They also give full disclosure on the commission rate. The broker compensation is part of your premium payments and the team will inform you about the percentage of your premium that goes toward the broker’s commission. This way, you will have all the information you need prior to buying the insurance.