Every quality advisor prides themselves on being “different” from their competitors. We each truly believe that there are certain standards and services that make us unique and stand out among the rest. In reality, this just isn’t always the case. When going through the insurance procurement process, it’s important to find a broker that is the right fit for your organization. The surest way to tell if your agent is truly “different” and has some of your best interests in mind is by asking these four questions:
1. Will we go out to bid every year?
This is a loaded question and hopefully one that your broker doesn’t say “yes” to. A sophisticated buyer of insurance understands that going out to market at renewal each year is detrimental to their risk profile and ultimately dilutes their case to negotiate. Experienced advisors educate their clients on how the market works and the best way to approach it. They know that in order to get the best results for their clients, they have to create competition among carriers. Going out to bid every year only hurts the chances of being able to create that competition for the client.
2. What are your claims protocols?
The value of insurance isn’t truly ever fully understood until there is a claim. When evaluating the services your broker can provide, it could be argued that claims handling is the most important. For high risk industries, managing claims has a direct and immediate impact on profitability and marketability. Claims advocates also provide preventative tactics and mitigation techniques to help reduce the frequency and likelihood of a claim occurring. If your advisor is solely relying on the insurance carrier to handle a claim, you may want to re-evaluate your representation.
3. What will you contribute to our culture?
There aren’t more frequent topics mentioned amongst executives these days than that of their people, talent, and culture. In order to see a return on the decision to select a specific broker over another, you have to quantify the contributions that particular advisor has contributed, or will contribute, to your company culture. These contributions look a bit like this:
- Establishing a safety program
- Quarterly payroll audits
- Contractual review and risk transfer
- HR Support
- Fleet safety and management training
- Back to work program
These contributions make an organization’s people the focus and help enhance workplace culture. Heightening awareness and utilizing these tools provided by the advisor should ultimately give the client more control over their insurance program. Advisors can’t control the market, but we can control how organizations are perceived by the market; a vibrant corporate culture focused on risk and safety makes a client significantly more attractive to an insurance underwriter.
4. What is our biggest exposure?
For far too long advisors have been selling insurance products that don’t fully address the needs nor solve the problems that a client may be facing. When discussing with your advisor, it’s vital that he/she pinpoints your greatest exposures to loss and the financial impact that comes with those specific types of losses. From only there and then can you begin to accurately develop a strategy to mitigate or avoid these types of practices. The key here is to understand that every organization is unique and has a certain way of conducting business. Your insurance program should be tailored to how you operate and be able to respond to the risks that you face on a daily basis.
Let’s be real: procuring insurance isn’t fun. It’s a time-consuming process and requires a lot of trust and communication between you and your advisor. Don’t regret your decision. Be sure to get answers to these questions.
Start saving money on your commercial insurance now. Call 860-652-3235.
For more information on business liability insurance, visit:
https://smithbrothersusa.com/commercial-insurance/
Smith Brothers provides Auto/Car Insurance, Homeowners Insurance, and Business/Commercial Insurance for all of Connecticut, Massachusetts, New Jersey, New York, and internationally.
Smith Brothers Insurance LLC
68 National Drive
Glastonbury, CT 06033
860.652.3235
