Without the right knowledge and expertise, navigating the nuances of insurance can be a challenge. Fortunately, an insurance agent can help you navigate this rather complex process quickly, as well as help you get the best insurance plan for your needs. A good and experienced insurance broker will strive to understand your client insurance needs, and then help you an insurance plan that meets your needs and budget. Here’s some more information on this topic. Whether you’re looking for personal insurance or business insurance, speak to an insurance broker today.
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Insurance Broker – An Overview
An experienced insurance broker is a trained and licensed insurance expert who helps individuals and businesses of all sizes find the right insurance policies for their needs. Some brokers specialize in particular types of insurance while others provide advice on a wide range of insurance types and policies. Unlike insurance agents, brokers don’t work for insurance carriers. Instead, they serve clients directly. This enables insurance brokers to provide a wide range of coverage options from various insurers. Moreover, insurance brokers typically don’t charge prospective policyholders for their services. Instead, they get commissions from insurance carriers based on policies sold. Brokers are also legally obligated to represent the clients’ best interests, and therefore, they typically strive to find the most suitable insurance policies for their clients.
Benefits of Using an Insurance Broker
Some of the key benefits of using an insurance broker include:
Experienced, Trained, and Licensed
All states have licensure and certification requirements for experienced insurance brokers. In general, prospective candidates need to take certain courses as well as pass a state-approved certification examination, such as Series 6 exam. Brokers are also required to continue with training to maintain their license. Through this extensive training and practical experience, brokers get a good understanding of all facets of insurance, from exclusions and policy limits to events that lead to claims. Using this knowledge, insurance brokers can help individuals and businesses by providing objective advice on the most suitable insurance coverage. Your broker will assess your insurance risks and then help you evaluate insurance policies from various insurers to help you find cost-effective policies that can help you adequately manage those risks.
Bridge Knowledge Gap
According to a recent survey by UnitedHealth, most prospective policyholders have little knowledge of insurance. This means they likely know little about the different aspects of insurance such as the different types and levels of coverage or exclusions. For instance, a business owner who intends to purchase a professional liability insurance policy may not be aware that their total insurance coverage comes with “shrinking limits,” which means the legal fee is deducted from a policy’s total limits, instead of being paid on top of awards and settlement. This can lead to a business being financially exposed if it’s covered by a policy with a low limit.
Eliminate Uncertainty
Trying to learn all the nuances of insurance before you make a purchase can be burdensome and time-consuming, given the complexity. Besides, many buyers base their purchase decisions on policy limits or premium price, without an in-depth understanding of their insurance needs, or what the insurance policies cover. By working with an insurance broker, you can eliminate this doubt, because the broker’s expert advice can help you choose policies that optimally protect you and are within your budget.
Brokers Provide a Range of Options
With a broker, your choices won’t be limited to one insurance company. You can, therefore, explore a list of types of policies, levels of coverage, and different insurance companies. This will help you find coverage that is ideal for you instead of a one-size-fits-all coverage that’s not tailored for your unique needs.
Brokers Offer Ongoing Service
While the transaction ends once you purchase a policy, the need for support and advice doesn’t end. Most brokers support their clients all through the policy term. Ongoing service may include:
- Helping file claims
- Ensuring clients comply with policy requirements
- Offering advice on when to change coverage or policies
- Inform clients of legal changes that may affect their insurance coverage
This kind of support can be immensely beneficial, especially if you don’t fully understand your insurance policies’ technical terms.
Save Time and Money
An insurance broker can help you save time and money in various ways including:
- Use technology-based tools –Insurance brokers generally use technology-based tools as well as their training and experience to analyze your liabilities and risks and to determine the level and type of coverage that’s ideal for your home, business, or family. Therefore, you don’t necessarily need to spend time and effort learning about the nuances of insurance and reading voluminous policies.
- Avoid over insurance or underinsurance – A broker can also save you money by ensuring that you’re sufficiently covered. Being underinsured or over insured can cost a significant amount of money. By ensuring your coverage is adequate, a broker can help you avoid situations where you’re either forced to pay out-of-pocket due to insufficient coverage or pay for coverage that’s unnecessary.
- Access great insurance rates – Importantly, an insurance broker can save you money by helping you access insurance rates that you can’t on your own. Insurance companies typically offer great rates to insurance brokers because they know that buyers who use brokers are likely to be adequately covered and well informed and thus aren’t likely to make frivolous claims. By working with a broker, you can access these lower-cost options from various insurance companies, which will allow you to shop for the best deal.
Peace of Mind
People purchase insurance policies to protect their families, businesses, and property. By working with an insurance broker, you’ll have peace of mind with the knowledge that what’s dear to you is well protected against potential risks. Your broker may even point you to an insurance plan that you didn’t even realize was available, such as special policy riders that ensure your high-value jewelry is protected, or travel insurance for companies whose workers travel internationally. A good insurance broker can help you build a cost-effective, comprehensive, and personalized insurance plan.
Conclusion
An experienced insurance broker can help you save both time and money in various ways, including the ways discussed in this article. With all your liability concerns addressed, you can rest easy and focus on other aspects of your life or business.
