- handshake image by Pavel Bernshtam from Fotolia.com Insurance brokers streamline the underwriting process. Purchasing insurance is a complex process that requires diligence and forethought. Nobody wants to discover their home, business or other property is not properly protected after a catastrophic loss. Working with an insurance broker goes a long way toward building peace of mind, as these licensed individuals understand the insurance marketplace and are tasked to help you find the best policy for your needs.
Agent vs. Broker
- Many people use these terms interchangeably, but there is a substantial difference between the two roles. Simply stated, agents act as an intermediary between an insurance company and the consumer, but have no responsibility to ensure you are adequately covered. Captive agents work exclusively for one insurer, while independent agents work for several. Insurance brokers are completely independent professionals who are licensed by the regional insurance authority. It is their duty to investigate your needs and recommend the best coverage for your particular circumstance. An agent might be able to obtain a lower premium for you than a broker, but if your needs are complex the advice of a broker can be invaluable to ensure you are properly protected.
Specialization
- Many insurance brokers represent insurance packages that are highly tailored for a specific type of risk. For example, if you collect fine art or jewelery, they may be able to provide you with coverage designed for those items. Similarly, in the business world, a broker may have access to programs tailored for doctors or lawyers, rather than a general small-business product. It is always a good idea to ask your broker if they specialize in your particular needs. That way, you can ensure you have the most appropriate insurance products protecting your assets.
Breadth of Offerings
- Make a list of the types of coverage you require, so you can ensure that an insurance broker can respond to all those needs. For example, if you own a home, small business, vacation property, sailboat, jet-ski and an automobile, you should ensure that the broker you select can respond to all those needs. Not only will it help the ongoing management of your insurance policies, it will also help your broker ensure there are no gaps in coverage that could come back to haunt you after a loss.
This entry was posted
on Wednesday, May 26th, 2010 at 9:19 pm and is filed under Home Insurance.
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