In this article, we are going to share four easy ways to identify if you need a new insurance broker. First, it’s important to note that insurance, like any industry, is a relationship business. That means you need to feel comfortable and trust your insurance broker to help you make the best risk management decisions for your company. As you take a step back and look at your relationship with your broker, here are four things to key in on:
- Can you trust your broker?
- Do they act as an outsourced risk manager for your company?
- Are they providing value outside of insurance?
- Is your broker acting as your advocate?
Can you trust your insurance broker?
Trust is absolutely key in the relationship between business and broker. Do you trust the advice they provide to you? As insurance professionals, are they communicating transparently about how the process works and what will suit your company best? How are they substantiating that trust? Communicating honestly, openly, and often is a sign of a good insurance broker.
Above all, you as the client should feel like your insurance broker is invested in your success. It is vital to know you can fully trust your insurance broker before you move forward.
Do they act as an outsourced risk manager?
Most insurance brokers view themselves as outsourced risk managers. A lot of companies aren’t big enough to employ their own risk managers, so they hire insurance brokers. Good insurance brokers challenge clients to push for the best results. Further, that can mean looking into growth opportunities or tweaking contracts. It is vital for the broker to let the client know what the insurance ramifications are for every decision they make.
For example, anytime a client expands operations into California, they should be made aware of several things by their broker. Everything in insurance is generally more expensive in California, so they should walk you through all of the numbers so you are aware before making decisions. It is vital to have an insurance expert on your team because everything varies greatly depending on the location and type of business.
Are they providing value outside of insurance?
First, it’s important to look at what type of value the insurance broker is providing outside of being your insurance person. Hopefully, they are connected to the local business scene and abreast of what is happening in the local business community. Do they initiate meetings with other helpful business owners and compatible partners?
Certainly, your insurance broker should provide not only insurance knowledge, but also help with your business development. They can do this by helping connect you with funding opportunities through private equity or venture capital.
Furthermore, your insurance broker should help make the company more visible. They are able to put clients in the spotlight for acknowledgement, awards, publications, etc. All of this proves the broker is looking out for your best interest.
Is your broker acting as your advocate?
Ultimately, your insurance broker should be your advocate. When you face claims as a company, it is the broker’s responsibility to keep you not only informed of the situation but to fight on your behalf. Your broker should be doing everything they can to get the best result possible. When you face insurance claims as a company how does that process go? Do you feel like they are advocating for you to get the best possible result? This is not to say the result is always successful, but you should feel like the broker is doing their part.
Finally, if all of these things don’t check out, maybe it’s time to talk to someone else. The current state of the insurance marketplace is competitive. The insurance market as a whole has hardened, which means it’s gotten more expensive. You want a partner that will help you make financially responsible and intelligent decisions in the insurance space.
In conclusion, communication is very important, as well as managing expectations. Go over the four key points above and ask yourself if you feel your current insurance broker checks all of the boxes.
You can get more information about Diversified Insurance Group and their approach to being insurance brokers here.