Not many people know just what it is that a commercial insurance broker actually does. It is important to understand the simple basics of commercial insurance brokerage such as who commercial insurance brokers are, what they do and how can you choose them.
Commercial Insurance Brokers
A commercial insurance broker is a person who sells various kinds of commercial insurance policies to corporate clients. They get the best possible insurance deals from the insurance companies and offer them to the potential customers. They are licensed and regulated by the Financial Services Authority (FSA). Commercial insurance brokers have several insurance companies on their panel and offer customers a choice of insurance packages, discounts, prices and service quality. Also, because customers have several insurance needs, brokers have a variety of insurance policies all under one roof, making it very convenient for clients.
What Commercial Brokers Do
- Collect information from business owners and evaluate their commercial insurance requirements.
- Research a number of commercial insurers and their policies to get the appropriate policy at the best possible price.
- In case there are special needs, the broker will research specialist insurance companies and their insurance packages.
- Arrange reports and documents for commercial insurance underwriters and surveyors.
- Renew expired commercial insurance policy documents.
- Sometimes changes are required in the existing policy document; brokers arrange for such changes.
- Brokers act as advisors to their clients; advising them when they should (or should not) make a claim on their insurance policies.
- Accumulate insurance premiums.
- Assist in the processing of accounts.
- Keep detailed records of clients.
- Help out on any legal issues that may arise.
How to Choose a Commercial Insurance Broker
You cannot just randomly pick out a broker and start doing business with them. There are criteria that you should follow to select the right broker.
- Find out what professional qualifications the broker has. This is a yardstick by which you can assess their commercial insurance know-how.
- Ask to see the broker’s CV to find out the level of experience and expertise of your commercial insurance broker. This way you can get an idea about the number of years in the field, additional qualifications or certifications and the workshops that have been attended.
- Find out when your broker last attended an insurance seminar or workshop. Your broker needs to be updated on all the latest insurance happenings and should be attending seminars and workshops regularly.
- Assess your potential broker by creating a hypothetical insurance scenario. Listen closely; if the broker just gabs away or gives vague answers, stay away.
- Once you choose your commercial insurance broker, make sure that whatever services are committed to your company are agreed to in a contract. Verbal commitments should include the cost of premiums, the type of coverage, the limits, and remuneration.
|
