Advising Today’s Worksite

Brokers Are Key To The Benefits Conversation

Three reasons your business clients will lean on you to launch their program

by Brian Freeman

Mr. Freeman is the Founder and CEO of Mployer Advisor, a digital marketplace for insurance advisor ratings and review.

If an employer is moving from five employees to 10 and offering benefits for the first time, or moving from 40 to 60 and must satisfy ACA benefit requirements, working with an experienced insurance broker is essential for success. Great insurance brokers and advisors should manage every detail for an employer, from healthcare to parental leave policies to claims management and education assistance.

Brokers provide the best coverage and plans for the most cost-effective price, enabling employers to focus on running their business while the brokerage handles the coverage, negotiations, and exchanges.

Below are three key reasons why businesses should begin their insurance journey by researching, evaluating, and selecting prospective brokerages.

Comprehensive and Tailored Benefits

One of a broker’s main responsibilities is to work with clients to better understand their needs before matching them with insurance policies and benefit plans. Brokers add value by assessing operational needs and risks, then building tailored insurance plans that fit that unique profile. With the help of a broker, the business will know exactly how much protection they need and what rates are available, resulting in more strategic, data-driven decisions.

It sounds simple, but asking questions is a straightforward way for a broker to make informed, fast decisions about insurance plans and benefits options on behalf of an employer. Of course, it is vital that brokers actively listen and engage with the concerns of their clients to garner the best results. With various industries, sizes, and geographic regions to consider, employers depend on brokers to recommend specific services and products tailored precisely for their business.

Talented brokers will determine what additional coverage needs to be purchased for a particular client; examples include cyber insurance, commercial auto insurance or data breach insurance, among others. Whatever a broker’s process, it is critical that clients feel their needs are being heard, addressed, and appreciated. For instance, if a business owner in Kansas is particularly worried about tornado damage, an experienced broker will allocate more time finding the right coverage to ease those concerns. Employers place a high value on partnering with brokers that understand the complexities of their industry and their company’s unique needs.

Broker Advocacy

With “broker” in the title, it is correct to assume that insurance brokers negotiate with carriers to get their clients the lowest prices on coverage. Acting on your company’s behalf, brokers will often leverage partnerships with insurers to negotiate better premiums or specific discounts. Working with a trusted insurance broker enables employers to focus on running their business, secure in the knowledge that their broker is working in their best interest.

Through licensing requirements and experience, brokers acquire specific knowledge about insurance and carriers, from policy limits and supplemental coverage to renewal options and rate discounts. Therefore, it is in the broker’s best interest to search for better coverage and rates that will save a company time and expenses long-term.

Brokers add value by assessing operational needs and risks, then building tailored insurance plans that fit that unique profile...

Furthermore, a good broker can assist with breaking down insurance options into terms and conditions an employer can understand. This clarity and open dialogue can mitigate employer uncertainty, providing guidance and expert advice to employers choose the optimal coverage plan.

Compared to the average person researching health or life insurance, businesses require more attention, care, and knowledge when it comes to finding coverage. The greater financial risk often translates to more intensive and encompassing insurance packages that can be increasingly difficult to fully comprehend. That’s why a brokers’ expertise is especially beneficial when communicating directly with potential insurers. What’s more, good broker partner can demystify complex lingo, assist in filling out essential forms and negotiate final deals. Ultimately, a top-notch broker will provide comfort and security for those unsure of what coverage they need and why.

Brokers Are “Insiders”

Ideally, employers want an in-house expert that is well-versed and knowledgeable on trends that can and will affect their industry. In these situations, a broker can eliminate a company’s need to spend time learning about insurance and policy options to determine which coverage best fits their business. Again, brokers work on behalf of a company when purchasing coverage and are not beholden to a particular insurance carrier. For example, if your existing insurer does not offer to bundle two insurance policies for your growing business, an experienced insurance broker will know to search for a carrier that will.

Additionally, insurance brokers are uniquely equipped to sift through the mountain of different insurance options to ensure their clients and their client’s business are protected. Their experience and in-depth knowledge of current policies and trends allow them to handpick data-driven plans based on their client’s particular interests and concerns. Exceptional brokers will be paying attention to industry changes and policies to provide the most up-to-date information and trends to a business.

Lastly, good insurance brokers provide services throughout a policy term, assisting clients with claims, offering advice on changing policies, ensuring compliance, and keeping track of regulations. Their understanding of technical terms in policies will help your business take full advantage of your coverage and benefits plan. Not only does this expertise make insurance procurement simple, but it also helps businesses avoid unnecessary extra costs and coverage they do not need. Furthermore, a brokerage can help build loss-prevention programs and review a company’s policy every year to remarket their premium and get the business the best-priced renewals.

In conclusion, working with a broker equips businesses with unbiased, cost-effective policy recommendations that are customized to their specific industry and company size. As a result, companies can rest assured that they’ve made the right choice for their business when working with a brokerage.

 

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