Everyone hates the middleman.
Viewed as no more than an obstacle to efficient pricing and fluidity in the marketplace, the middleman is a pit stop, a waste of time and money. What’s one of the best marketing slogans ever invented? “We eliminate the middleman,” right?
Actually, wrong in plenty of cases and definitely wrong when we’re talking about insurance for your business.
We recently shared our thoughts about things you need to consider when choosing an insurance advisor. What follows are five reasons you’ll want to turn to an independent insurance broker rather than trying to deal directly with an insurance company.
It’s a common misconception but, generally speaking, you don’t pay any more for insurance purchased through a broker vs. coverage directly purchased from a carrier.
In fact, an independent insurance broker typically gets better pricing from carriers than customers who buy direct. In part, that’s because the brokers do a lot of business with those carriers. It’s also because the carriers trust them to help sift out businesses that pose the greatest risks, while helping companies implement whatever changes they might need to make in their safety programs to avoid claims.
Claims happen. You can eliminate the middleman and contend with them on your own. When you do, you’ll be dealing with an insurer that serves as both judge and jury. If you disagree with the outcome of your claim, you can’t appeal to the “judge” because they work for the same company. It’s an inherent conflict of interest. The alternative? An independent insurance broker who you can turn to, to help deal with the stress and aggravation, who will speak up for you and who can help you make sure you’re dealt with fairly.
An independent brokerage is … independent. Brokerages work with lots of different insurance companies that offer a wide variety of coverage options and price points. Why accept one quote from one company? Insurance companies know that brokerages will shop around. That’s why they work so hard to please their best customers: the brokerage. The brokerage, in turn, finds you the right blend of price, coverage and service – from a range of options.
The best brokerages put relationships first. They’ll periodically review your coverage, help you through the big (and smaller) changes in your business and life and make sure you’re properly covered. In short, they become your personal adviser, taking the time to listen to you and understand your individual and business insurance needs.
Unless you truly understand the insurance business, you’ll want someone at your side with an unbiased opinion who can help you be sure you’re not under- or over-insured. And it cost you a dime more to bring this middleman into the picture.
Brian Parks is an AVP of Sales at CCIG. Reach him at BrianP@thinkccig.com or at 720-330-7918.
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