man shaking hands with insurance broker

13 Reasons You Should Hire an Insurance Broker

Insurance brokers are slowly dominating the insurance realm with the number of brokers and agencies reportedly increasing by 2.4% in 2019.

Their increasing dominance is driven by factors such as beneficial legislation and macroeconomic growth. Also, more consumers now realize the array of benefits they get when they work with a broker. This has, in turn, spurred the popularity of brokers even more.  

If you’re thinking of getting insurance, you should also consider hiring one. Hiring an insurance broker to find insurance coverage can save you money in the long run. Learn more with these reasons to hire an insurance broker.

What Do Insurance Brokers Do?

Before we get to the benefits, how exactly do insurance brokers work? To put it simply, a broker acts as a bridge between you and the insurance company. However, unlike typical agents, an insurance broker works with a long string of insurance companies.

Since they don’t represent a specific company, insurance brokers usually work in the best interest of the client. They’re often paid by commission by the insurance company.

Benefits of Insurance Broker

When you hire a broker, you open up a world of benefits for you, your business, and your family. Described herein are some of the main benefits you’ll enjoy:

1. A Diverse Selection Of Policies

As noted, insurance brokers aren’t limited to one specific company. They thereby have access to the entire market. Therefore, one of the main benefits that consumers enjoy when they hire brokers is access to a diverse array of policies.

2. Help You Choose a Cover that Suits You Best

As noted above, the field of insurance is quite diverse. While this spoils you for choice, it also makes things a tad hard for you. You’ll have to wade through tons of policies to find one that suits you, yet the stakes of you signing up for the wrong cover will still be high.

An insurance broker changes the whole scenario by advising you on the best coverage, depending on your situation. Unlike a captive agent who’ll only tell you about the kind of policies they offer, a broker will provide a detailed explanation about all types of covers in the market.

For instance, when it comes to life insurance, those seeking coverage usually have the option of choosing between term, annuities, and whole life policies.

As an average Joe, you may not be aware of these options. Since a broker is working in your best interests, they’ll make sure you’re aware of your options. They’ll also tell you about the pros and cons of each policy. At the end of the day, you’ll go home with a solution that suits your situation best.

3. Saves You Time

The number of insurance companies opening up is on the rise. Reviewing every company and the policy it offers is both time-consuming and hectic.

When you hire a broker, they’ll not only give you access to the entire market but will also do the heavy lifting for you by recommending some of the best companies. This enables you to choose a provider who suits your needs and also saves you time.

4. Access To Expertise

Brokers are right at the heart of the insurance world. This means they’re well-versed about the different types of policies available. They’re also aware of the trends shaping the insurance realm as well as those that are about to take over.

When you hire one, you automatically get to tap into their wealth of knowledge. This means you’ll always be well-updated about what’s happening in the world of insurance.

5. A Broker Works For You

As mentioned, a broker doesn’t work for any company. This automatically means that they’re working for you and as such, they’ll do so with utmost good faith. In other words, instead of pressuring you to buy a particular policy, professional brokers such as Morison Insurance Brokers Inc. usually focus on finding you a plan that suits your needs.

To achieve this, they take time first to analyze and understand your business. This places them one step ahead as they’re able to give recommendations based on your business’s actual risks. What’s even better is that they’re impartial. Therefore, you can trust that the suggestions they offer aren’t based on the need to get company promotions or bonuses.

6. Easier Claim Process

A captive agent will talk you into buying a particular policy, but once the risk happens, you’re on your own. Since a broker works for you, you can trust that they’ll walk with you during the claim process to ensure you receive a fair and immediate settlement.

In case your insurer rejects the claim, the broker will also act as the advocate by ensuring that you get what you rightfully deserve so your life can go back to normal.

7. Valuable Industry Information

Insurance brokers have been in the market longer than you. They’ve also worked and still work with a long string of insurance companies. Their network comprises of other brokers and professionals such as lawyers.

Thanks to this, brokers are often aware of companies that offer the best services. They’re also usually aware of companies that tend to reject customer claims and those which tend to increase rates without consulting their customers. 

In other words, they know the good and the ugly about insurance companies. When you hire them, they’ll ensure they inform you about these facts, enabling you to steer away from problematic insurers. 

8. A Reliable Source Of Insurance

As your life or business evolves, your insurance needs also tend to change. For instance, when you start a business, you only need basic policies such as property and professional liability covers. But as time passes, you might find yourself in need of workers compensation insurance.

When your business and insurance needs change, you don’t need to go back to the market again. The insurance broker you hired at the beginning will be there to help you find a policy that suits you once again. This enables you to secure all your covers through one broker, which significantly reduces the stress associated with having to deal with multiple companies.

9. Helps You Cut On Costs

Insurance is costly, but with the right broker, it’s possible to get an affordable plan. As mentioned, a broker works with your best interests at mind. Therefore, based on the budget you have at hand, a broker can work their magic by modifying a policy to suit the coverage or premium that you expect.

Additionally, thanks to working with specific companies for a long time, buying a policy through them might help you access discounts and special rates. Also when you secure multiple covers through one broker, you spontaneously unlock special discounts. This cuts on costs significantly.

10. Personalized Support

Even though technology is quickly replacing most forms of communication, face to face support means more effective guidance.

When you buy insurance directly from the company itself, access to customer support is usually limited. Whenever something comes up, you may have to break off your busy schedule so you can visit the company’s offices. By hiring a broker, you save yourself all the trouble as he/she will offer you personalized support.

This comes in handy during renewal, especially if you’ve secured several covers with them. Other than that, you can call them whenever a need arises, and you’ll be sure that they’ll respond appropriately. 

11. They Offer More Than Services

When you hire a captive or an independent agent, they’re there to represent particular companies. This means they’re only interested in selling you the policy and be merry on their way till renewal time.

To a broker, you’re not just a source of cash. They’re there to create lasting business relationships so you can be part of their network. They perceive you as a long-term partner, and as such, they’ll always look out for you.

Additionally, the more you work with them, they better understand your needs, which means better policies in the future.

12. Your Privacy is Assured

Brokers are required by the law to maintain your privacy. Other than that, you deal with them instead of the insurance company. This means you can contact them and ask to meet them at a venue of your choice for privacy purposes.

If you open up multiple businesses or you need to secure various assets, you don’t need to worry as your privacy is assured.

13. It Doesn’t Cost You Anything

On top of all the benefits listed above, it doesn’t cost you a dime to hire a broker. As noted at the beginning, insurance brokers are often paid on commission. This payment is usually made by the insurance company and not you.

What’s even intriguing is that brokers are usually open about their remuneration. Therefore, if you feel that their commission might cause your premiums to increase, don’t hesitate to ask.

Are You Ready To Hire An Insurance Broker?

In a nutshell, a broker is a valuable human asset to your business and life in general.

Are you ready to hire an insurance broker? If yes, ensure you visit our page for tips on finding the insurance broker.