Prudent insurance brokers are knowledgeable and competent professionals assisting individuals in buying and understanding the best insurance coverage for their needs. They work in a wide spectrum of markets, including personal, commercial and specialty lines.
Below are some characteristics of prudent brokers:
– A broker understands insurance products better than anyone else
– Presents clients with unbiased options
– Advises on what type of coverage is best
– Ensures the right amount of coverage is applied to reduce risk or increase financial stability
What are Prudent insurance brokers?
– Prudent insurance brokers make sure people get the right amount of coverage, at the right price
– A Prudent insurance brokers will review your current coverage and make recommendations based on their experience and knowledge of you and your family’s needs
– A prudent broker will explain what to expect after a claim is made
– All prudent insurers have customer service as a core value
– A prudent broker should be able to tell you how many years they have been in business
How do you find a prudent insurance broker?
Prudent insurance brokers can be found through insightful research in local business directories or by asking family or friends for referrals. Therefore, you may want to ask questions about the experience of the broker and what their qualifications are. Also, check the reputation of the broker and how long they have been in business with those specific insurers. The best way to find a prudent insurance broker is by asking for their name and the names of other reputable brokers in their company. The Prudent Insurance Brokers Association has a clearinghouse of information where you can look up brokers by license number, credit rating or type of insurance (personal, commercial or specialty).
Is there an advantage to using an insurance broker?
Yes, the advantages of using a broker include:
– More knowledge and experience
– Lower cost
– Prudent insurance brokers are independent which means they will look out for your best interest
How do brokers get paid?
Brokers may be pay a commission by the insurance company based on the premium. They may also be pay a commission based on any additional sales such as ancillary products, endorsements or riders. They receive a contingency fee if they obtain an award or settlement for you or your family. Many brokers receive a fee for their services and are not pay by insurance companies.
Insurance broker’s responsibilities
As a prudent insurance broker, you will be responsible for the following:
– Protecting your interests
– Providing unbiased information
– Checking that you are getting the highest possible amount of coverage for your needs
– Ensuring timely claim handling of your claim. As a result it is handle properly and efficiently. Therefore, at every level from initial investigation through administration processes and legal representation (if necessary) to final settlement or award.
What do principled insurance brokers do?
A principled Prudent insurance brokers will look out for both the growth of the client’s business and the profitability of the insurer. They are not motivate by money or selling products. However, Prudent insurance brokers will look at coverage and investigate the suitability of the product to meet client needs:
– The right coverage is the most important consideration
– To protect the most amount of income in case of a loss
– In managing risk, prudent brokers understand that insurance premiums and coverages are based on statistical probability of occurrence (premium setting)
– A Prudent insurance brokers goal should be to get you a lower premium based on their experience and knowledge. Therefore, they do this through an analysis of your needs and how much you can afford based on your current net worth.
Is an insurance agent the same as a broker?
No, the term “agent” is used by many insurance companies to describe their representatives. However, insurance agents are not always require to be license. Therefore, in every state and are not always require to have an independent contractor’s license. Additionally, some insurance agents may be pay commissions and others may work on a contingency fee system.
A competent agent will be able to provide you with an unbiased presentation of the coverage requirements for your business or personal insurance policy quoting from a number of companies (see Issues with Insurance Agents ).
An agent is mandatory when purchasing auto or home policies. But optional when buying most other types of business and personal policies.