How to Choose a Commercial Insurance Broker

Commercial Insurance Broker

In the United States, shrinkage costs business owners $45 billion dollars every year.

Commercial Insurance Broker, Shrinkage happens when your company loses a profit without earning any revenue. Paperwork problems, supplier fraud, employee theft, and shoplifting can all contribute to shrinkage. With the right insurance policy in place, you’ll be able to mitigate some of those losses for extreme cases.

If you’re getting ready to buy your first business insurance policy or shopping around your old one, you’ll want to check out this guide. You’ll learn how to hire the best commercial insurance broker. A broker who can help you cover all of your bases without overpaying.

What’s the secret to hiring an insurance broker you can trust? Read on to find out.

Understand the Carriers the Broker Offers

One of the easiest ways to determine whether or not you’re dealing with a quality commercial insurance agent is to ask them about the specific carrier they represent. A captive agent will only be working for one insurance company, and they’re only going to be able to offer you one type of insurance product. They’ll be limited to the premium prices and coverages that their particular insurance company has available.

Insurance brokers like, don’t have this type of limitation. Instead, you’ll be able to shop your policy around with a ton of different companies to get the best rate and coverage options.

Your broker will be able to put your specific coverage needs over the goals of any insurance company. If you decide to move forward with an independent broker, keep in mind that only fiscally sound individuals will get contracts with the big-name carriers.

When you know what companies your broker is dealing with, you can research whether they’re an A-rated carrier. Discover the carriers’ credit rating and financial stability by doing a little bit of online digging. After finding out what carriers they offer, go one step further to discover what type of insurance products the broker can provide.

Does the Broker Know the Industry?

Industry knowledge is vital when looking for a commercial insurance agent. Minor distinctions play a significant role in finding the exact insurance coverages you need. By finding a broker who’s familiar with your industry, you’ll be able to rest easy knowing all of your bases are covered.

There are many different types of insurance for business, and each sector operates differently. For instance, if you owned a landscaping business, you’d want a broker experienced with writing landscaping policies. They’ll know the ins and outs of exactly what coverages you need and how to navigate any potential roadblocks.

Ensuring your company vehicles when you have a landscaping business can be tricky. You need coverage for the car, and the trailer holding all of your landscaping equipment. The right insurance broker will know how to create a particular policy that fully covers your vehicle, the trailer, and its contents.

If you own a company where you drive clients from point A to B, even if just for showings, you’ll need a special policy. A standard commercial policy won’t cut it. Instead, you’ll need a broker who can help you find a carrier that extends coverage to passenger industries.

Pay Attention to the Quoting Process

Have you already started to call around to different commercial insurance brokers? If yes, you’ve noticed that the quoting process can be a bit lengthy. Insurance brokers have to get a lot of information about your company and how it operates before they can even begin to get you a quote.

To avoid wasting time on the quoting process, you need to look for a broker that helps make everything easy. If you find that it’s easy to talk to the broker from the moment you get on the phone, you’ll know you’re on the right track.

Go one step further and see how the broker responds to your emails or phone calls. Are they able to provide you with quick updates and adjustments to the quote?

Are they happy to explain the details of the insurance policy? The quoting process can tell you how the broker operates and how they’ll do business in the future.

If it’s not a super smooth quoting process where you feel like a valued customer, then take your business elsewhere. You deserve to have a broker that inspires trust and confidence.

Knowledgeable About Claim Procedures

Knowing how to get you a policy is just the beginning of what an insurance broker should do. When looking for a reputable broker, you also need to find out what type of expertise they have in the claims business.

Claim time is the most critical time since this is when you’ll be reaching out for help in a time of need. Your broker will be a liaison between you and the insurance carrier. The better they are at settling claims, the better your claim payout.

Your broker should set you in a position where you can receive the most for your claim in the easiest way possible. Go ahead and ask potential brokers what their track record is on handling claims.

Do they have dedicated people directing you through the claims process? Or is the broker going to be holding your hand the entire time?

It’s okay if the broker isn’t going to directly handle the claims process. Still, they should be fully knowledgeable about who will be helping you. You’ll need an insurance company to settle your claim quickly and efficiently.

Find a Commercial Insurance Broker You Trust

At the end of the day, it’s really about finding a commercial insurance broker you trust. An agent can have all of the expertise and credentials, but it’s not a good fit if you don’t trust them. You should always feel like a valued customer during the quoting process and nothing less.

Don’t be intimidated to start a new policy. Start calling Insurance brokers today so that you can get a policy you feel confident about.

Want more tips to make confident choices? Read another one of our blog posts.