Selecting An Insurance Broker: Questions To Ask When Selecting An Insurance Broker
What are the important questions to ask a potential insurance broker? Who is an insurance broker? He is an expert who specializes in negotiating with different insurance on behalf of your business in order to get the best deal for you. An insurance broker should be someone reliable, dependable and trustworthy. He must have the right experience and expertise to give the best to your business insurance.
Are you ready to start working with a new insurance broker? In this post, I have outlined the top five questions to ask an insurance agent in order to get the best insurance for your small business. Your best insurance is an insurance broker.
Insurance broker questions to ask – 5 questions to ask an insurance broker
Question 1 – What Is The Duration Of Your Experience In The Insurance Industry?
A good insurance broker should have enough experience and exposure in the insurance world, understanding the series of processes and varieties of insurance products. A professional insurance broker should also be versed in the latest trends and changes in insurance policies in order to be able to get the best that fits your business needs.
Question 2 – Where Is The list Of Your References?
Do you want to know how trustworthy that insurance broker is?
Are you interested in the reputation of such broker in the industry? The best step is to verify that your broker is licensed and also check his/her disciplinary records. Carry out background check on your broker using institutions that track complaints registered against them like the Better Business Bureau and State Insurance Commissioner’s office.
Question 3 – Can I Get To Know Your Staff?
Many times, insurance broking firms rely on employees for the running of their business operations. Some of these operations include maintaining portfolios, researching and filing claims. To get the best from your insurance package, insurance that the staff is as qualified and experienced as the insurance broker and know how does an insurance broker work.
Question 4 – How Much Time Does It Take Him To Handle Claims?
You need to find out if that insurance broker is good at processing claims. You want to select insurance agency that helps get claim instantly so it is important to look into his past records in handling claims.
Question 5 – What Is The Frequency Of Contact With Clients?
If you work with a professional insurance broker, you should be contacted at least 4-5 times in a year. Besides, a responsive broker should be readily available when you need him. He should take time to review your policies of the year and inform you of offers that can be of benefit to your business.
You hear complains about insurance schemes, even in developed countries like the United States of America. But what better way is there to relieve yourself of the burdens associated with choosing an insurance plan than by asking a few intelligent questions?
Most business owners gather butterflies in the stomach when it comes to issues of subscribing to an insurance plan. Inevitably they wonder, am I likely going to lose out? Of what benefit would it be? I hope I would not be making a mistake? Some might even ask, what if a disaster never happens? Well…what if?
Any financial institution has its risks and possible pitfalls, and these questions are properly founded but should simply be directed to the right individuals for answers—the Insurance broker! He is in better position to clarify things and limit the commonplace fear that grip most business owners when going for insurance. Their fears are justified as there are lots of scams out there.
There are a number of questions that are sure to prove the honesty and value of any insurance agent. In order to find out the very details of the insurance venture, as well as avoid possible regrets, then it is important to consider asking your business insurance agent the following questions.
- Do You Have a License?
As a boast of professionalism, it is important for an insurance broker to at least possess a license and necessary qualifications. This goes to prove how legitimate indeed the agent is, and also saves you the eventuality of realizing that you have fallen into the wrong hands. You can verify him up by searching him through in any license board, and well as his previous records in the industry.
- What Assistance do you Provide when your Client processes a Claim?
Key to the business is to find out exactly how he aids the process of processing claims. This is core part of your dealing with him after all. How long would it take for a claim to be processed? What may turn out to be bottlenecks for the claim processing? He must prove beyond reasonable doubt his ability to facilitate the process to your favor.
You can go ahead and check how efficient he has been with his past clients—what has been his success to failure ratio? Critically analyze his answers to guide your choice of an insurance broker.
- Do you Know all Activities I do in my Business?
This is very important. It is either he does know, or you make him know. If he does not know, you might fall into the common mistake of not having some possible damages insured. Any damages that occur in areas or within the activities the insurance does not cover does not entitle you to a claim. So you see? You have got to be as white as possible as to what it is you do.
- Do I have Options in Making a Choice of an Insurance Policy?
As important as insurance is in managing risks, it is important to also check for alternatives to the traditional insurance and adopt other measures to manage risk. Sometimes, it turns out that those means come in cheaper packages, and even more suitable for your particular business.
- How are Premiums Calculated?
Although most persons make the mistake of missing out this question and getting by it, it is not always funny for every business owner; after all its business, isn’t it? There are factors you may be unaware of that shape the size of your premiums, for example, bad credit reports. So by questioning your insurance broker in this regard, you would know what it is you should work on in order to be in better position for healthier premiums.
- How well Do You Interact with your Clients?
As a passionate insurance broker, there should be a swift channel of communication between the insurance agent and the clients. He should be easy going with his clients and should possibly have a mailing list in which he gets in touch with his clients frequently. This fosters efficiency in the entire insurance process.
- Which Insurance Company(ies) are you Affiliated With?
It is definitely more probable that the more companies an agent has worked with, the more experience and access to quotes he would have garnered. It should therefore be one indicator to look out for when choosing an insurance agent.
- If you don’t mind, Can you Point me to some of References?
A great insurance agent should have gathered accolades, and a client-base of persons he has worked with that have good remarks about him. These, you should also check up, so as to know what you are likely to get by working with such a broker. It also goes to prove the professionalism of his qualifications.
- Are your Services Class-Oriented?
It would not be so favorable for a small scale firm to share the same insurance agent with a multinational company. It would be recommended that the insurance agent a business should choose be one that caters for the caliber the business falls under. This would make the agent more focused in discharging his duties without much considerations.
- Would you be Using the Assistance of any other Colleagues?
It is also necessary that you be aware of any hands that would be involved in the insurance scheme so far. Who are his employees and colleagues that would be part of the entire process? It is important that you are not kept in the dark.
In addition, the answers to these questions should guide your choice of who should be your insurance agent. You should not choose an agent that:
- Avoids your questions
- Tries to avoid being as detailed as necessary
- Does not have a license
- Twists facts in his favor
With these clues, you are good in choosing a qualified and quality insurance broker.
If you ask these five questions to ask your insurance broker, making good choices by getting the top insurance brokers and insurance policies are guaranteed.