8 Things to Consider When Choosing an Insurance Advisor

July 26, 2018

Selecting the right insurance policy for you and your family or your business requires that you understand your coverage choices. That’s why it’s so important to choose the right insurance advisor.

Here’s what you’ll want to consider in finding the right advisor for you:

1. > Insurance companies sell their policies in two different ways: through a direct writer or through an independent broker. If you do business with a direct writer, you’re doing business with that one insurance company and they can only offer you the products they sell at the prices they’ve set. On the other hand, an independent brokerage represents multiple insurance companies and can match their client to the insurer that best suits the client’s needs in terms of coverage, pricing and service.
2. > A referral from someone who understands your business is always great to have. But even then it pays to visit the National Association of Insurance Commissioners website to do a bit of research. Make sure you conduct a search for any potential complaints against the advisor you have in mind. It might seem obvious, but make sure the advisor you are considering is licensed to practice in your state.
3. > Ask any advisor you’re considering about his or her firm’s experience in handling claims. Be sure you’re not about to hire a broker who won’t be at your side when it comes to resolving a claim with the insurance company.
4. > Understand how the advisor will go about determining the coverage that’s right for you. Shopping on a price-comparison basis risks leaving you unprotected. You’ll want to make sure you have adequate coverage regardless of the cost.
5. > Consider their credentials. Do they have the professional insurance-industry designations that suggest they’ve accrued the education and experience needed? Look for advisors with advanced designations such as Chartered Property Casualty Underwriter (CPCU) or Certified Insurance Counselor (CIC).
6. > Consider their experience. Do they know your industry? The most-qualified insurance advisors know much more than the ins and outs of property and casualty coverage. They’ll have worked with other companies in your industry and have an intimate understanding of the exposures and risks faced by companies like yours.
7. > Have a face-to-face meeting. A broker who uses a lot of industry jargon in their product and coverage explanations in their conversations with you suggests the potential for miscommunication. You want to choose someone who explains things on a level you can comfortably understand. You also want someone who asks you lots of questions to ensure you’re properly insured.
8. > Try to gauge how comfortable you might be when they’re around. You’ll want to get a feel for how they work, and whether their personality meshes with yours.

CCIG is a Denver-area insurance brokerage with the full-service capabilities of a national brokerage. We do more than make sure you have the right policy. We also help you manage your long-term cost of risk with our risk and claims management expertise and a commitment to service excellence.

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