3 Traits to Look for in an Insurance Broker

If you’re like most business owners, you see insurance as just another task on a lengthy to-do list. But the right insurance broker should do more than simply send your annual renewal in the mail.

How can you be sure your broker is getting the best coverage and terms? Here are three key questions to ask.

1. Is the broker staying familiar with your business as it changes?

If your broker simply sends you a renewal package in the mail every year, it’s not doing enough to understand your business needs. A broker should visit your facility and ask questions about everything, from your supply chain to the materials you use.

A broker should also be aware of any international expansion plans, because not all insurance companies can provide the correct coverage for international risks.

In addition to ensuring you have the right coverage, a good broker should work with you on risk management and risk control, helping you to reduce incidents and minimize the potential of claims. Insurance can be a strategic business tool if you’re working with the right broker.

2. Is the broker an advocate for your business?

Your broker should be actively looking for your best insurance options. It should be able to provide you with an insurance marketing report—a document that shows which insurance companies were approached and what they proposed.

A broker should also give you insight into how insurance underwriters view your business. It should be able to explain how your claims history affects your premiums, and explain the steps you can take to lower these premiums.

3. Does the broker let you guide the process?

While a good broker should understand that insurance is just one of your many priorities, it should make sure you’re in control of the annual renewal process.

A broker is required to give you a minimum of 30 days to review renewal terms and make any necessary changes. It should be transparent about the process and about the insurance markets it is working with.

While today’s insurance market has been relatively stable, and renewals are typically straightforward, it’s always a good idea to be aware of the best practices for renewing your insurance.

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