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3 Things to Expect From Your Insurance Broker

I’m going to hit you between the eyes, and you may like it, but not at first. I’d like to think I know a couple of things about insurance.

I’ve worked in the Insurance Industry for over 30 years.  My ultimate accomplishment was owning an Independent Insurance Agency. Additionally, one of my favorite clients trains insurance agencies so I see what thousands of agencies do wrong, every year, all across the country.

Here it comes, the part where I hit you between the eyes:  Your Insurance Broker may not be servicing you properly, and it could be costing you money, and maybe a lot of money.

I know, I know, insurance isn’t something you think about all that often, maybe once a year, when it’s renewal time. And, that’s when you discover how your Insurance Agent is managing your account.

Maybe your premium went up. A lot. And no one from your Insurance Agent’s office contacted you to let you know that they are aware of the situation. So, you go through the strife and stress of dealing with that situation, whether you go through the motions of switching to another company, or you complain and ultimately pay the higher premium.

You get through the moment. Then, return to your normal life. Until the same thing happens next year when you’re stressed out again.

My Insurance License in Connecticut is still active. I kept it as a matter of convenience for the occasional client. During the pandemic and the assistance we provided to thousands of business owners seeking disaster relief funding, we were exposed to many other elements of their operations, including their insurance, as part of the financing process.

When I see how business owners are being serviced by their insurance professionals I am, quite frankly, surprised and confused. What I see most often is these businesses have insurance policies where their business is under-insured, over-priced, and minimally serviced.

I didn’t run my Independent Agency that way nor for the clients we assisted during the pandemic. Your insurance agent or broker is a licensed professional and as such, they should be doing these three things.  If they’re not doing these to honor your business relationship, then you may want to consider who is managing your insurance.

  1. Annual Review. Your Agent should contact you 60-90 days prior to the policy renewal to review your current policies. The review should include questions about the status of your business and plans for the future. They should be reviewing current coverage and premium as well as other life changes so that could affect the policy and any potential claims.

  2. Updates on Coverage. Insurance Carriers can change their underwriting standards from time to time. It’s up to your Agent to be aware of those changes and to update you when those changes can affect your insurance, negatively and positively.  Your Agent is the one with their finger on the pulse of the industry, and as a licensed representative, while you’re busy running your business.  Your Agent should notify you when a change will affect your business.

  3. Servicing the Heck Out of You. Practically every business owner I’ve come into contact with in my financing business states that they never hear from their Agent. When we needed an insurance document for their financing, the process of obtaining that document takes longer than necessary because of the lack of communication. The Insurance business is a SERVICE business.

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