How to Select a Small Business Insurance Broker

A small business insurance broker typically works with several types of insurance products and can help you sort through the insurance offerings from multiple companies. An insurance broker can help to ensure that you meet all state and local requirements for insuring your small business. You can select an insurance broker in much the same way that you would choose any other business professional.

Difficulty: Easy

Instructions

1. Determine the types of insurance your business will need. You may need a wide variety, from worker's compensation to accident coverage on a company vehicle. You can select a broker who handles all of your needs, or you may split your business between multiple brokers.

2. Ask for referrals to insurance brokers. Good sources of referrals include professional associations, your local Chamber of Commerce and other business owners with similar insurance needs. While you can pick a broker out of the phone book, knowing which brokers are reputable can help you narrow the field.

3. Interview potential brokers before you select one to handle your business. Ask about the broker's experience, other companies she may have worked with and what sort of insurance needs she expects your business to have.

4. Contact your state's licensing agency to check on a broker's status. Insurance brokers are required to maintain licenses, and the state regulatory agency may maintain records of any complaints against specific brokers. Licensing requirements can vary by state.

5. Check that your insurance broker will be available to you when needed. Typically, it is acceptable to expect that a broker is able to return your phone calls within a day, especially since your broker is often your only point of contact for your insurance. You should make your expectations clear before agreeing to work with a broker, including expectations such as when you expect monthly statements to arrive.

Tips & Warnings

• If your business is very small, you may not need the wide variety of services an insurance broker can offer. An insurance agent may be better able to help you in such a situation. Speak to a few agents and brokers for assistance in selecting the best fit.
• Avoid confusion when it comes to making changes. When you work with an insurance broker, you are not working directly with your insurer. Any changes to your insurance policy will have to go through your broker.

[eggerist]

on 12/1/2009 informative article...5* I just called my broker to get me quotes (never thought of that)