So You Already Have A Broker? Here’s What You Should Know About Business Insurance
Dan Levenson January 28, 2020
Make no mistake; insurance might be the only thing that can keep your business afloat when a disaster strikes. Yet, 40% of businesses never reopen after such incidents.
At the same time, many business owners often cry foul when insurers deny their claims. They assume insurance companies only want their money and therefore act unfairly.
But in most cases, insurance companies have very good reasons for denials. The most cited reasons include:
- Omission of important details
- Late filing
- Lack of specificity
- Exceeding coverage limit
The surest way to prevent it from happening to you is to never take chances with your business insurance. And it all starts with the broker you work with.
Unfortunately, some business owners don’t take time to find the right broker or agent because they “already have a broker.” It is not uncommon to find business owners switching brokers after things head south. According to a 2017 Broker Services Survey, most clients changed brokers due to timelessness and ineffective services.
Choosing an insurance broker for your business is like picking a business partner. Get the right partner and your business’ interests will be prioritized. But choose blindly and the chickens will surely come home to roost someday.
So, how can you know you have the right business insurance broker?
What To Look For In A Business Insurance Broker
The business world today is highly specialized and competitive. And since your insurance broker is more of a partner, it’s imperative that he/she understands your industry very well. The good news is that some brokers specialize in particular industries.
Industry expertise ensures you secure the best coverage for your business at a reasonable rate because they understand the risks involved.
Carriers And Coverage
Studying the carriers a broker represents can tell you a lot. Great brokers usually get contracts with the best-rated carriers, so make sure your broker works with A-rated carriers.
It is also wise to look at the products your broker offers. As you do so, think about the future. As your business grows, your insurance needs will also expand. So make sure your broker has the products and expertise to grow with you.
Claim time is the most important point in any insurance policy. Finding a broker with a solid track record in handling claims is necessary. Therefore, ask your broker about the claim services they offer.
Ask them about past claims to gauge their level of experience. Brokers who have handled claims before have a greater understanding of the entire process. They are more likely to represent you well.
Other factors to consider when evaluating business insurance brokers include:
- Knowledge of reporting claims
- Quoting process
- Digital solutions
As you can see, finding the right broker for your business is not a walk in the park. Sitting comfortably and assuming you “already have a broker” is also too risky. So…
Is It Time To Change Your Business Insurance Broker?
Rather than waiting for an incident to happen to evaluate your broker’s prowess, take action now. This can help you avoid thousands of dollars in fines and property damage.
So if you already have a broker but feel unsatisfied, here are signs to confirm it’s the right time to find a new broker.
Slow Response To Requests
Managing a business takes time and energy. No owner has the luxury of chasing down brokers for certificates of insurance (COI) and endorsements. So if your broker is not responding to your requests on time, it may be a good time to find a great broker.
Lack Of Expertise
Insurance policies can be extremely complicated. Studies show that people tend to choose the wrong insurance plans if they rely on their own judgment. So your broker should be your expert.
For instance, they should clearly tell you how the policies protect your business from certain risks. If not, find another broker.
Unclear Renewal Process
Renewal is an important time when your risks are assessed for changes. There is, therefore, a high chance that your coverage and policy will change.
However, that doesn’t mean you’re kept in the dark about the process and details that necessitate the changes. If that happens to you, it’s time to shop elsewhere.
Continuous Errors And Omissions
As mentioned earlier, omissions of important details can put your business in a bad spot when making a claim. So if you observe significant inconsistencies, it means your broker doesn’t pay attention to details and is jeopardizing your business.
Other signs to watch out for are:
- Poor market results
- No or unclear vision of emerging risks
- Poor customer service
- Limited availability
Clearly, having business insurance is no longer a reserve for only giant companies. But to make the most of it, make sure you get a broker or agent who understands your business and its risks.
At Insure Your Company, we pride ourselves in helping you secure proper coverage and documentation to help you take your business to the next level. Contact us today to speak with our business insurance expert.