Four Advantages Of Dealing With A Commercial Insurance Agent As Opposed To An Insurance Company
When looking to purchase insurance coverage for a business, you have two options. You can purchase commercial insurance coverage directly from an insurance company or a commercial insurance agent/broker.
Before deciding on which option to buy from, it is advisable to compare and contrast the benefits of using either and determining which is the best option for you and your business. However, the phrase "eliminate the middleman" won't necessarily give you the best result when purchasing insurance.
Thus, here are four benefits of purchasing insurance coverage for your business from a commercial insurance agency.
Multiple Insurance Options Under One Roof
There are two types of insurance agents: independent and captive. Independent insurance agents are free to offer multiple commercial insurance products from different insurance companies. On the other hand, captive insurance agents are limited to providing commercial insurance products from only one insurance provider.
If you make a wise choice and work with an independent commercial insurance agent, you have an opportunity to compare and contrast different commercial insurance products from different insurance companies under one roof. Thus, an independent commercial insurance agent can help you minimize the time it would take to consult different insurance companies about their policies.
Additionally, a commercial insurance agent will help you pick out the insurance plans with the most liabilities covered at reasonable prices, making it easy to choose good coverage.
Advice on the Best Types of Coverage
Different businesses require different types of commercial insurance coverage depending on location, type of business conducted, assets, and availability of workers. It might be a daunting task for a business owner to determine all the various coverage's a business needs.
However, if you approach a commercial insurance agent, they are willing to conduct all the research for you at no cost. They usually don't charge for research and advice on the different commercial insurance policies because they intend to sell you the covers.
Additionally, since a commercial insurance agent has your best interests in mind, they will regularly notify you about new commercial insurance products that could benefit your business. Hence, you are always in the know of the latest insurance products available for your business.
Save Money
Commercial insurance agents purchase insurance policies in bulk, so they get a discount. Due to the economies of scale these agents get when they buy in bulk, they offer commercial insurance cover at a lower price than buying directly from an insurance provider. Even when the agency factors in its commissions, the price is still lower than the retail price of commercial insurance offered by insurance companies.
Additionally, commercial insurance agents can negotiate insurance premiums on your behalf when you purchase coverage from them. Hence, as far as minimizing the cost of commercial insurance gets concerned, purchasing from a commercial insurance agent is the best option.
Assisting With Your Claims
A commercial insurance agent can advocate on your behalf when you have a pending settlement claim. Thus, you can rest assured that your claims are getting sorted out. Additionally, the agent can also advise you on your options if the claim gets rejected.
However, when filing a claim with an insurance company, you have to incur legal fees for hiring a lawyer and getting the court involved. Thus, a commercial insurance broker is a less expensive option for settling claims.