Why your business should use an insurance broker
Whether you own and run a small business or oversee the operation of a sprawling multinational company with offices across the world, you should be fully aware of the importance of using an insurance broker. There are numerous key reasons for utilizing the services of professional insurance brokers, such as kbdinsurance.com. From balancing an organization’s risks to getting industry-specific advice and insurance products that are specifically tailored to your company, an insurance broker is a vital source of specialist information. This article explains three of biggest reasons why every business should utilize the services of an insurance broker.
They offer impartial advice
A key trait of any insurance broker is that they offer honest, clear, and impartial advice. Insurance brokers are different to insurance agents in the sense that they do not represent one specific insurance provider. Instead, they function as intermediaries between a range of insurance providers and the client themselves. This is a significant benefit to businesses as it allows them to consider a range of business insurance products from a variety of specialist providers rather than simply the offerings from one specific insurance firm. Insurance brokers tend to search the market on your behalf after taking detailed information on the coverage needs of your business. They use this information to create a shortlist of business insurance products that are perfectly tailored to the stage of your business growth and the need to minimize corporate risks and liabilities. As they are not tied to a specific insurance provider, the advice they give is not influenced by one specific insurer. This allows the business owner to be confident that they are getting the best advice and selection of insurance products that fit their organization.
No upfront fees
Another key point in choosing an insurance broker for your business insurance needs is that, generally, there are no up-front fees involved. An insurance broker typically receives their remuneration for the service provided in the form of commission. This tends to be written into the business insurance contract, so that when the policy is successfully activated, a percentage of the annual premium is paid for in the form of commission from the insurance company that has sold the policy. Whilst some insurance brokers may charge fees for consultancy work or for dealing with a claim, the most common method of remuneration is through commission. Insurance brokers are open and honest about the amount of commission they will make if you decide to choose one of their recommended policies and will be happy to tell you about this figure in the interests of transparency and honesty.
High levels of expertise
Professional insurance brokers that work for well-respected firms will have undergone years of in-depth training in the course of their employment. Whilst a bachelor’s degree is not a prerequisite for becoming an insurance broker, it is likely that many brokers will have a business or financial background and will need to be fully licensed to practice. Years of industry-specific expertise and keeping abreast of legal developments mean that they are ideally placed to offer expert information and advice backed up by practical knowledge of the insurance industry. This assures business owners that the advice they give, and the products offered are some of the most suitable for the business itself.