| Commercial insurance brokers deal with commercial fleet, product liability, public liability and employer’s liability (workers compensation), among other things. An example of a major UK commercial insurance broker is Marsh & McLennan Companies.
Commercial insurance brokers provide one or more of the following services :
- Risk and Insurance Services - global risk management, financial solutions, risk consulting, insurance program management services for associations, businesses, public entities, professional services organizations, and private clients and insurance broking.
- Risk consulting and technology - investigative, financial, security, intelligence and technology services to law firms, corporations, nonprofits, government agencies, financial institutions and individuals.
- Human resource consulting - consultation in the field of HR and related financial products, advice and services. Consultation helps clients create and implement employee health care and insured group benefit programs.
- Investment management - offering equity and fixed income products to individual and institutional investors that are invested globally and domestically.
- Specialty consulting - create and manage strong businesses that ensure “shareholder value growth” including financial services and risk management consulting, working with boards of directors, executives and CEOs to help organize institutions and bring about positive changes, providing information and guiding law firms, corporations, courts and government entities about regulation and finance and helping clients create and manage brands and their corporate identity.
Commercial Insurance Brokers
Commercial insurance brokers working for professional companies can provide you with very specialized and customized services as required by large companies and corporations. Commercial insurance brokers will shop around to find the most suitable insurance policies with low premium rates. They will effectively identify risks and negotiate with various insurance companies to get you the best deals and discounts. Global risk management and insurance brokerages have a global distribution network which they use to place your insurance risk with the best possible insurance provider.
The insurance brokers will know of how different companies calculate and evaluate the credit score and set premium rates. The broker will also be aware of the special discounts and exceptions offered by these companies. Your agent will prepare reports, maintain records and in case you suffer a loss, help you settle your insurance claims. Some brokers also offer financial analysis or advice about how to minimize risk. Brokers search through a large number of different insurance databases to find you the best price. As a result you get the best deal without having to spend hours searching for quotes; you receive quotes and advice and are not pressured to buy.
A commercial broker is able to negotiate low-cost deals for extras like add-on legal cover or breakdown cover. As a result, you can add these to your policy for a fraction of the price. Commercial insurance brokers will tell you when you need to update your policy and provide you with prompt and personal service. Your broker will also guide you through any claims process to ensure that you are treated fairly by the insurance company.
General Insurance Brokers
General insurance (i.e. all types of insurance except life insurance) is made up of two main groups: personal lines and commercial lines. Commercial lines insurance provides coverage for commercial autos, farms, commercial credit, aviation, marine/ocean/inland, workers’ compensation, public liability (which includes environmental pollution), surety, nuclear, surplus and excess lines insurance, title insurance, machinery and boiler insurance, glass insurance, commercial multiple line, product liability and professional liability. Buying commercial lines insurance is a must since some of the major risks that businesses and corporations face include litigation, destruction of the premises and the death of employees (due to fire or natural disaster) and the loss of equipment or money.
Here are a few examples of the types of insurance that commercial insurance brokers can arrange for you :
Liability Insurance : provides coverage in case someone sues you for causing them unintentional injury (e.g. if a customers slips on your business floor and breaks a bone). Liability insurance will cover your attorney fees and pay the settlement amount when a verdict is reached.
Professional Indemnity Insurance : provides coverage in case of negligence claims against professional practitioners such as lawyers, dentists, doctors, accountants and architects. Another form of professional indemnity insurance called errors and omissions insurance is most commonly purchased by non licensed professionals such as artists or graphic designers.
Directors and Officers Liability Insurance : protects companies, mostly corporations, for legal claims arising because of the negligence and errors made by this company’s directors and officers.
Crop Insurance : provides coverage for crop loss or damage caused by frost damage, insects, disease, bad weather, hail or drought.
Crime Insurance : provides coverage in case you suffer losses due to theft or embezzlement committed by a third party.
Aviation Insurance : protects against risks associated with hull, hull war, liability, spares and deductibles.
Terrorism Insurance : provides coverage for losses arising as a result of terrorist activities.
Political Risk Insurance : provides coverage to businesses that suffer a loss because of the political conditions of the country in which they are operating.
Environmental Liability Insurance : protects industries and companies in case of leakage or release of pollutants which results in property damage, injury and clean up costs.
Title Insurance : ensures that the person who bought the property or is paying the mortgage will retain the title to the property, free of any encumbrances such as liens.
Workers' Compensation Insurance : helps workers when they suffer from a job related injury by paying all or part of the wages they lose and the medical expenses they incur.
Boiler Insurance : provides coverage to factories and construction in case of accidental physical damage to equipment or machinery
Builder's Risk Insurance : provides coverage in case of physical loss or damage to property during construction.
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