How To Interview Your Insurance Broker

Insurance brokers offer consultation services to people that intend to purchase insurance. The truth is that many people do not know what to look for when hiring an insurance broker. Below is an excerpt with some questions you can use to interview your broker. 

What Is Their Experience? 

Your insurance broker must be experienced in the trade. The primary advantage of dealing with an experienced broker is that they understand the current industry trends and government regulations. For instance, the broker can inform you about statutory insurance and the requirements of professional organisations. You should also examine the reputation of the broker. For instance, you should check client reviews on the broker's website.                                  

Are They Independent? 

Independent insurance brokers do not have an affiliation with any insurance company. They do not have any bias since they do not have a conflict of interest. When you are working with an independent insurance broker, they will inform you what the various insurance companies have to offer. This ensures you have a comprehensive understanding of the insurance market. As such, you will be able to make an informed decision. 

What Services Will They Offer?

Your insurance broker should offer the following services: 

  • An evaluation of your business or personal situation to determine a suitable cover. For instance, If you need life insurance, the broker can advise you on whether you should take whole, universal, permanent or variable life insurance.
  • The broker should help you reduce your insurance premiums. For instance, for business insurance, they should advise you on how you can reduce business risks to ensure you pay smaller premiums.
  • If you need more than one cover, the broker should help you combine them. For instance, product liability insurance could be combined with public liability insurance.
  • Experienced brokers will negotiate the terms of your insurance cover. For instance, they can negotiate the premiums or ask the insurance company to split the annual payments into several instalments.
  • If you have an accident, your broker should follow up on the claims process. 

What Are Their Terms? 

One of your concerns should be the broker's pricing strategy. Some brokers will charge per hour, while some will charge a small percentage of the total cost. Regardless of this, ask the broker to remove extra and hidden charges. As a rule, your broker should have professional liability insurance. This protects you from losses. 

When hiring an insurance broker, inquire about their experience, affiliations, services, and terms. Contact an insurance broker to learn more.