For most insurance and employee benefits needs, employers must carefully weigh the value of their plan against the needs of their workforce. To do so, employers must turn to an insurance broker for guidance. So, how do you pay an insurance broker for their services, and how much do they make?

In most cases, you do not directly pay an insurance broker. Brokers are typically paid commissions by the insurer based on your policy, and the commission is included as a retention item in your premium cost. This is the case with fully insured coverages.

For any employer needing guidance to select insurance options for your employees, you should know how brokers are compensated for their services. This involves understanding commissions and fees.

In this post, we explain how an insurance broker is paid, differences in fees between brokers and consultants, and what to expect when you hire one.

How Insurance Brokers Are Paid

Before you select an insurance broker, you should know how they are paid. Typically, brokers provide policy information, quotes and enrollment/renewal assistance at no direct billable fee to you.

Insurance brokers are typically paid through commissions based on insurance policies sold.

Commissions are typically based on a percentage of your premium payment. These may include base commissions and supplemental (or contingent) commissions.

Commissions usually fall between 7% and 15%, but can vary depending upon the type of coverage and complexity of your policy. Usually, brokers receive level commissions or graded commissions based on premium thresholds. In addition, they may receive an override commission for a block of business with a particular carrier. This override will typically also include a small percentage for persistency. The higher the persistency with that carrier, the higher the percentage.

Some brokers are paid solely through commissions for policy purchases and renewals, but some include other fees for additional services, such as voluntary benefits enrollment.

Explaining Broker Fees

Sometimes, brokers will also charge fees as they take on consultant (or advisor) roles, providing ongoing services to help determine if policies should change, assist you with compliance, and help submit claims and receive benefits.

As brokers take on more consulting and advising responsibilities, fee-based broker compensation has become a more common payment method. Usually called a “fee for service agreement,” these fees are paid by insurance companies or may be directly billed to the client.

Even with commissions and fees a broker can add value and be lower cost than not utilizing a broker.

Fee Differences for a Broker, Consultant/Advisor, or Agent

Independent insurance agents work with (and are paid by) multiple insurers, with contracts limiting them to sell certain policies. Brokers and consultants (also called advisors), meanwhile, are not limited to certain policies and can solicit price quotes from multiple insurers.

Insurance brokers and insurance consultants perform similar functions, are licensed, and have a fiduciary duty to you as the insurance buyer. But there are some differences between the two.

The main differences between an insurance broker and a consultant/advisor are their fee structures and how involved they are with a client beyond insurance purchases and renewals.

Traditionally, an insurance consultant works on a fee for service, and an insurance broker works for commission based on the policy’s premium. Consultants usually charge fees instead of, or in addition to, a commission that’s included in your premium payment. This is in the form of direct invoice of billable hours or a direct offset billable hours with commissions received.

As opposed to brokers, consultants often forgo commissions from the insurance company, which means they must charge a consultant’s fee. Unless of course, the client prefers them to receive commissions and offset their billable hours or fees in that way.

It all depends on your state, your size, and what type of insurance you need, but average consulting fees are 15% of the policy premium. The higher the premium, the lower the percentage.

Many modern insurance brokers’ services have evolved, and work more like consultants/advisors, working with you throughout the year and not just when you need to spend money on insurance. You should know what services your broker or consultant provides, if they charge fees, and what those fees are, before allowing them to search for insurance policies on your behalf.

Thus, the difference isn’t always straight forward. It is always in your best interest to define the relationship and expectations of the services expected.

Insurance Broker Main Duties

• Negotiating lower policy rates based on relationships with insurers.
• Contacting you ahead of renewal with changes in policies or rates from insurers.
• Explain benefits and insurance options to your human resources team and other staff.

Insurance Consultant Main Duties

• Expertise in how your business operates, along with how insurance and benefits impact operations and employee management.
• Administrative task management, including enrollment, onboarding, automation and billing reconciliation.
• Working with HR leaders, decision makers and other employees to help the insurance-buying team reach decisions.
• Exploring options beyond policy cost that can improve financial and operational conditions for your company.

What to Expect When Working with an Insurance Broker

With a broker, you get industry knowledge and experience. They understand the language of the insurance industry, and are best equipped to negotiate and service your needs with insurers.

As your business grows and changes, you should expect your insurance broker to provide decision support. To earn their payment, brokers and consultants should be involved in your plan several times per year, helping make decisions that complement your overall business objectives.

When evaluating insurance brokers, be sure to explore online ratings and benchmarking studies that show who is in your market.

Connect me with a broker

The best way to find good insurance and benefits is through a broker, consultant, or advisor who knows the industry, has the partnerships, knows your needs and can deliver on the procurement process.

But, how do you know who to hire? With seemingly endless options, you feel under pressure to choose the right one. We believe that transparency, information, and choice leads to better hiring decisions.

It's why we created Mployer Advisor, a free broker marketplace that allows employers to compare brokers, consultants, and advisors in one place.

To get started, get matched with a short-list of qualified brokers.Looking for more exclusive content? Check out what’s trending on the Mployer Advisor blog, or read "Can an Insurance Broker Save My Company Money?" for more information on this topic.

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Navigating the business insurance landscape requires guidance, and an insurance broker can handle that research and process for you. But not all brokers are made the same, and some business owners wonder, “Can I change my insurance broker?”

The resounding answer is yes, you can absolutely change your insurance broker. As the insurance-buying client, you can replace the broker managing benefits and insurance for your company.

A good broker will act as an extension of your business, with deep industry expertise and an understanding of your individual needs. Switching to more knowledgeable brokers or advisers could provide a more personalized plan with similar and even lower costs. In most cases, you can also change your insurance broker while keeping the same insurance company and policy.

In this post, we discuss when you should change your insurance broker, what it costs to switch, and how to vet your new insurance broker.

When Should I Change My Insurance Broker?

More than 40% of businesses do not feel satisfied with their current broker, and 21% have changed brokers in the past three years, according to Zywave.

Insurance buyers can easily become dissatisfied with the services of typical insurance brokers, prompting them to want a change. Dissatisfaction can come in many forms, including:

• A lack of tangible value stemming from an insurance broker
• An insurance broker’s lack of knowledge about your industry
• Slow response time or infrequent communication from your broker
• A broker doesn’t understand or appreciate your business’s specific needs for insurance or benefits
• Unwillingness to keep up with technological innovations, such as online business insurance management

At a minimum, you should be able to trust that your broker is finding appropriate coverage for your company. If your broker is not attentive, and doesn't provide valuable and specific insights to you as a client, it may be time to consider a broker change.

The best brokers will ask you thought provoking questions and continually analyze your risk profile, especially during the renewal process. However, if your broker only shows interest when annual renewals arrive, they might not be reliable during an emergency.

Moreover, your insurance advisor's relationship with insurance markets dictates their ability to have meaningful conversations and find competitive quotes. They need to know which policies and benefits best fit your organization and insurance price ranges in your industry.

Your broker should be a partner all year, not just once a year. High quality service providers should talk you through emerging risks and educate you on improved insurance coverage as it becomes available. Nearly 30% of businesses felt their broker lacked an understanding of their company or didn't have expertise in their industry, according to the Zywave survey.

If you experience any of these service problems, you should consider changing your broker. The right broker representative is out there.

What Does It Cost to Change Insurance Brokers?

Businesses might worry that switching insurance brokers could lead to increased premiums for their coverage. This is usually not the case.

In general, you can switch to any broker licensed in your state without additional fees. Plus, it's possible to switch insurance advisors without changing your current policy.

Typically all that is needed to change brokers is an effective dated broker of record letter change on your company letterhead that names the new broker as your new broker of record. This letter is sent to each of your insurance companies' representatives.

The insurance companies will then pay your existing broker commissions until the new broker is named and at that time, the new broker will start to receive the ongoing commissions and be on record to service you as a client with those insurance providers.

In some states that don’t recognize brokers and only have licensed agents, where the agent’s services provided mirror what would be considered typical broker services, this change letter may be called an Agent of Record Letter. Transfer of broker may or may not take place during renewal.

Are you looking for a second opinion on your company’s employee benefits plan? Find a broker that can provide you with a free analysis.

How Do I Know My Insurance Broker Is Working in My Company's Best Interest?

When you hire an insurance broker, they work directly for you–not the insurance companies.

A broker's main duty is to understand your business and find fitting insurance policies within your budget. They should also provide ongoing services to determine if and when to change policies, assist with compliance. Some may help resolve claim issues.Brokers rely on repeat business, so they are financially motivated to choose the best coverage for your company on an ongoing basis. Insurance companies also frequently offer incentives to brokers for policy renewals, so they should work hard to find satisfactory policies from the start.

Good brokers often can provide a procurement process and negotiate lower rates for clients based on their knowledge, history and relationships. But ultimately, insurance contracts are between your business and the insurance company, regardless of the broker who helps manage it. If you are dissatisfied with your broker/advisor, or you suspect they are not doing their best work to aid your business, you should explore your options for changing your representative.

Connect me with a broker

How Do I Vet an Insurance Broker?

There are about 413,000 insurance brokers and associated businesses in the U.S. as of January 2021, according to IBIS World. That means you have plenty of options to choose from when vetting a new insurance broker.

If you are ready for a change, you will first need to explore your options. The fastest way to find a new broker–whether or not you plan to keep your current insurer – is through Mployer Advisor's proprietary M-Score can show you how different brokers rate in terms of industry expertise, transparency and cost.Looking for more exclusive content? Check out what’s trending on the Mployer Advisor blog.

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While brokers can save you time and money, they are compensated for their services. Not all brokers are made the same, and the commissions or fees they collect may be different.

Insurance brokers typically are compensated a commission fee based on a percentage of the policy premium. The commissions are usually paid by the insurance company, not the buyer.

In this post, we explain fees and commissions for insurance brokers, how they get paid, and how much you can expect to pay for brokerage services.

How do you pay an insurance broker?

An insurance broker typically makes money from agreed-upon commissions when your company buys and renews policies from insurance companies.

In most cases, commissions are paid by the insurance company that the employer chooses. It is usually a percentage of the premium for the policy, and may or may not be already built into the retention component of the premium cost.

Payments to your insurance broker could include both base commissions and supplemental or override commissions.

Most commissions fall between 2% and 8% of premiums, according to Investopedia.

Negotiating fees and commissions for your business insurance broker may be possible, and is dependent on the size of your company along with the internal incentive policies of your insurance provider.

Some brokers are contracted for several years, so you might need to pay broker fees through the contract term, regardless of policy changes, unless the broker violated your contract. Your policy could also contain a "short-rate cancellation fee," by which you would owe your insurance company money for cancelling your policy midterm. It is important to know the terms of your agreement.

Insurance brokers do not sell insurance, but they can find insurance companies and coverage policies that align with your business. To finalize and initiate a business insurance policy, your broker will need an insurance agent or insurance carrier.

Broker fees

Some brokers are paid solely through commissions for policy purchases and renewals, and some include other fees.  Some states have restrictions on these non-commission payments but broker fees rarely eclipse more than 15% of the premium.

Broker fees can be combined with a commission structure, and should be disclosed to you upfront.

Sometimes, brokers will charge fees as they take on consultant (or advisor) roles, providing ongoing services to help determine if policies should change, assist you with compliance, and help submit claims and receive benefits. You should know if your broker or agent charges fees, and what those fees are, before they start searching for insurance policies on your behalf.

The fee may be a similar amount to the commission they could have earned, and unlike commissions, it doesn't come from the insurer.

Broker fees are usually non-refundable, so you will still have to pay if you cancel your policy mid-term, unless your insurance broker violated your contract. Again, it is important to know your contract fees and terms.

Even with commissions and fees, a good broker adds significant value.

Do insurance brokers have my best interest?

You might wonder if insurance brokers have your best interest at heart. In most cases, they do.

When you hire an insurance broker, they work directly for you – not the insurance companies.

Brokers also rely on repeat and referral business, so they are financially motivated to choose coverage that your company will keep renewing for a long time. Insurance companies often offer incentives to brokers for policy renewals as well, so they should work in your best interests to find satisfactory insurance plans.

On the other hand, since they are paid by commissions based on premium costs, brokers could be incentivized to add unnecessary coverages.

You should be able to trust that your broker is finding appropriate coverage for your company. If they are not attentive, do not provide valuable advice, or only appear when renewals are coming up, it may be time to browse other options.

There are very good professional brokers in your market. With that said, broker relationships do change. If you are not satisfied, know that more than 40% of businesses do not feel satisfied with their current broker, and 21% have changed brokers in the past three years, according to Zywave.

In general, you can switch to any broker licensed in your state without additional fees. Plus, it is possible to switch insurance advisors without changing your current policy. Changing to more knowledgeable brokers or advisers could provide a more personalized plan with similar costs.

How do I understand the fees and commissions my insurance broker is paid?

Insurance buyers should compare brokers and consultants based on professionalism, demonstrated knowledge in insurance, understanding of your industry, transparency and cost.

To avoid unexpected costs, you should know fees upfront, examine your broker’s relationship with insurers, and understand the difference between insurance brokers and insurance agents.

Employers should know how their brokers are paid, but insurance policies are seldom simple, so you will need to ask about every potential fee or commission. These include contingent and supplemental or override type commissions. Good brokers have no issue with transparency.

When evaluating and choosing  insurance brokers, be sure to explore benchmarking studies that give you an understanding of who is out there and how much you should pay. Mployer Advisor’s proprietary M-Score can show you how different brokers rate in terms of industry expertise, transparency and cost.Looking for more exclusive content? Check out what’s trending on the Mployer Advisor blog, or read "Can an Insurance Broker Save My Company Money?" for more information on insurance brokers.

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An insurance broker can save you a lot of time but can they save money for your business, compared to going directly to insurers?

The short answer is yes. Insurance brokers get better rates by leveraging industry expertise and insurer relationships to find the right policy with proper coverage at appropriate costs.

With access to multiple insurance carriers and policy packages, independent brokers can find value in the insurance market based on your company’s specific needs.

In this post, we explain how insurance brokers get better rates and how they can make your job easier.

How insurance brokers get better rates for your business

A good broker addresses your specific insurance and benefits needs at optimal costs by connecting you with the best insurance for each of your identified risks. This way, they are often able to get better rates on insurance policies for clients than individuals buying insurance directly from the company.

At a basic level, an insurance broker will compare the coverage of various insurers to get you rates specific to your needs. And they will save you time on administration and claims by managing your policy. But there are more ways that a broker can get better rates for your business:

Finding policies.

• An independent broker is not obligated to sell insurance policies from any specific carrier. So, they can compare coverage packages from various insurers to get you the best rates available. Brokers will assess your business’s specific insurance needs to match you with policies from carriers best equipped to meet your needs at the right price.

• After all, there are so many carriers, types of insurance, and complex policies for even a small, at home business to consider. The best mix of insurance may involve products from different companies. A broker will conduct that search for you, and can also combine different types of insurance and different carriers to reduce your premiums.

Making insurance decisions.

• One of a broker’s main responsibilities is to work with clients to understand their needs before matching them with policies. With a broker or brokerage firm guiding you through insurance options, you can know exactly how much protection you need and what rates are available.

• Having a broker to answer your questions is an easy way to make informed, fast decisions on insurance and benefits. They provide you with unbiased, cost effective policy recommendations tailored to your business. Then you can confidently buy coverage that gives you the best solution.
• Not only does this expertise make an easy job of insurance procurement, it also helps you avoid unnecessary extra costs and coverage you do not need.

Negotiating with insurance carriers.

• With “broker” in the title, you would be correct to assume insurance brokers also negotiate with carriers to get you the lowest prices on coverage. Acting on your behalf, they can leverage partnerships with insurers to negotiate better premiums or specific discounts.
• Brokers’ licensing and expertise in risk assessment presents a lower risk to insurance companies, so they often discount the premiums for these representatives. In this way, a broker can access policies and rates that may not be available for those going directly to the carrier.
• Brokers searching for better coverage and rates ongoing can also save you time and expenses long term. Your brokerage could help build loss-prevention programs and review your policy every year, remarketing your premium to get your business the best priced renewals.

Is it easy to work with an insurance broker?

Good Independent insurance brokers make it easy to understand your coverage needs and pick a carrier based on coverage types, deductibles, covered risks and prices that work best for your business.

For many reasons, it is easier to work with an insurance broker than finding and purchasing policies on your own.

After all, you are not paid to be an insurance expert, and sifting through dozens of policy plans can be stressful, at best. Brokers add value by assessing your needs based on all your operations and risks, and then finding insurance plans that fit your profile.

They guide you through the buying process with professional advice, listening carefully to your needs and asking questions that lead to intelligent choices. Importantly, a good broker also helps you by breaking down insurance options into terms and conditions you can understand.

From claims management to employee benefits education, a full-service broker will provide the knowledge and detail that lets you focus on running your business.

Smart businesses have good insurance and benefits. The best way to find good insurance and benefits is through a broker, consultant, or advisor who knows what you need and provides you with significant value. But, how do you know who to hire? With seemingly endless options, you feel under pressure to choose the right one. We believe that transparency, information, and choice leads to better hiring decisions.

Connect me with a broker

It's why we created Mployer Advisor, a free broker marketplace that allows employers to compare brokers, consultants, and advisors in one place.

To get started, find brokers near you to get matched with a short-list of qualified brokers.Looking for more exclusive content? Check out what’s trending on the Mployer Advisor blog, or check out some more insurance broker content.

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Using a broker, consultant, or advisor to find and implement insurance plans for your company is an easy way to save time and money. But many business owners and human resource professionals find it hard to differentiate between a broker, consultant, or advisor when it comes to insurance and employee benefits.

The main differences between an insurance broker and a consultant/advisor are their fee structures and how involved they are with a client beyond insurance purchases and renewals.

Importantly, the broker, consultant, or advisor gets to choose their title – there is no regulatory or licensing distinction. Since a consultant and advisor usually have the same responsibilities to clients, we can generally interchange their definitions.

In this post, we’ll explain the similarities and differences between an insurance broker and an insurance consultant or advisor. Some states also have an Insurance Counselor license which typically applies to Life Insurance advising.

Insurance broker vs. insurance consultant

Both brokers and consultants work with multiple insurance companies, so they tend to have broad options for policy offerings and key benefits. However, business insurance consultants and business insurance brokers do have different responsibilities – primarily in the scope of services they offer to employers.

Traditionally, the difference is that a consultant charges a fee for service, while a broker works on commission. Some brokers are paid solely through commissions for policy purchases and renewals, and some include other fees for additional services. Consultants charge fees and sometimes may offset fees directly with commissions if the client chooses to have the insurer pay the consultant versus paying billable hours or fees directly.

The more important distinction between brokers and consultants is a transactional vs. consultative relationship with your business.

An employee benefit broker’s primary focus is helping you buy and renew insurance and benefit products.

The term “broker,” strictly by definition, historically means “shopping for coverage.” They re-evaluate insurance plans/renewals every year and facilitate insurance one year at a time. Meanwhile, “consultant” and “advisor” describe benefits professionals that offer additional strategic or advisory services for their clients.

A business insurance consultant handles procurement and enrollment, but also manages your company’s collective benefits package in ways that improve your overall human resources strategy and other business objectives.

Many modern insurance broker’s services have evolved and work more like consultants/advisors, working with you throughout the year. Thus, the difference isn’t always straight forward. It is always in your best interest to define the relationship and expectations of the services expected.

Insurance broker main duties

• Has expertise in insurance policies, insurance carriers, and procuring different options for business insurance plans.
• Negotiates lower rates for clients based on their history and relationships, as well as the amount of insurance that they are purchasing.
• Focuses on off-the-shelf products for employers, with pricing offered by third parties, and compares your current plan to other offerings.
• Contacts you ahead of renewal with changes in policies or rates from insurers.
• Provides presentations to staff explaining benefits options and how to use them.

Insurance consultant main duties

• Has expertise in how a business operates and how benefits and HR impact operations and employee management.
• Assist with administrative tasks, including enrollment, onboarding, automation and billing reconciliation.
• Works with decision makers, influencers and other employees to help the insurance-buying team reach a decision.
• Explores options in addition to the cost of plans that can improve financial and operational conditions in your company.

When to use an insurance consultant

Business owners and HR managers are focused elsewhere without the time to become experts in  insurance policies and employee benefits. For most, using an insurance consultant, advisor or broker will save time and total costs compared to going it alone.

A good consultant will understand coverages and policies as they relate specifically to your business, and will find ways to tailor your coverage, maximizing protection and minimizing cost. To earn their fees, consultants should be involved in your plan several times per year – not just during enrollment and renewals.

Put another way, you should use an insurance consultant when you need ongoing expertise about insurance and benefit options, beyond finding and purchasing a policy. A consultant can bring your company a vision and new ideas that shape a strategic HR plan for the future. This may also include actuarial attestation for specific programs.

A consultant is particularly useful when your company’s operations require specialized expertise.

How to find a good insurance broker or consultant

There are about 413,000 insurance consultants, brokers and associated businesses in the U.S. as of January 2021, according to IBIS World. But how do you find the right one?

Connect me with a broker

When you look for a broker, consultant or advisor, ignore the title. Focus instead on what they do, how well they’ve done it, and how they get paid.

There’s a quick way to find valuable information about brokers in your state. Start your broker search at Mployer Advisor, a free broker marketplace that allows employers to compare brokers, consultants, and advisors in one place, and download our benefits benchmarking report to see how your benefits compare to your competitors.

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Using an insurance consultant, advisor, or broker to find and implement the right insurance policies for your company is a good way to save time and money. But how do you know when to hire one?

Some insurance brokers offer strictly brokerage services, finding the best insurance and benefits policies and assisting with renewals. Others, acting as insurance consultants or advisors, offer additional services and strategies for more complex business insurance needs.

You should hire an independent insurance consultant if you need ongoing expertise about insurance and benefit options, beyond finding and purchasing a policy.A consultant can bring your company savings, insights, and strategies that help shape your risk management and human resources plans.

In this post, we explore the main duties of an insurance consultant, the pros and cons of hiring one, and how to find a business insurance consultant that fits your needs.

The Main Duties of an Insurance Consultant

At a basic level, an insurance consultant may advise on insurance policies and claims, procure employee benefits, offer plan administration and provide compliance documentation. The consultant will be involved in your plan throughout the year.

Along with administrative tasks, onboarding and billing reconciliation, insurance consultants give your company advice to control costs, manage risks and process complex claims. A consultant is particularly helpful when you need specialized insurance expertise or services.

Insurance consultants typically have these responsibilities:

• Has expertise in how a business operates and how benefits and HR impact operations and employee management.
• Assists with administrative tasks, including enrollment, onboarding, automation and billing reconciliation.
• Works with decision makers on policy, strategy and execution.
• Explores solutions  that impact financials.

• Actuarial and other specialized services.

The hourly or project based fees for an insurance consultant depend on the size and complexity of the services and hours provided. An insurance consultant or advisor can be an important resource and partner in adding value.

Insurance Consultant vs. Insurance Broker

Business owners and HR professionals might wonder whether they need a broker, consultant or advisor for their insurance and benefits needs.

Since a consultant and advisor usually have the same responsibilities to clients, we can generally interchange their definitions. However, business insurance consultants and business insurance brokers have different responsibilities – primarily in the scope of their services to employers.

Historically, an insurance broker typically worked on commissions while a consultant worked for a fee. However, many brokers now include fees and many consultants charge or are capable of offsetting fees with commissions. The reason for these changes is the evolution of additional administrative services or solution partners provided by both brokers and consultants.

The more important distinction between brokers and consultants is a transactional vs. consultative relationship with your business.

A broker’s primary focus, by definition at least, is helping you buy and renew insurance and benefit products. They may offer additional services, such as enrollment assistance and administrative work, but the scope of services is more specific.

A consultant or advisor may provide those tasks associated with procurement and enrollment, but also manages your company’s collective benefits package in ways that improve your overall human resources strategy and other business objectives.

Consultants offer ongoing support and expertise into how a business operates and how benefits, finance and HR impact operations. Beyond assisting with administrative tasks, they explore options aside from policy costs that can improve financial and operational conditions within your company.

Pros and Cons of Hiring an Insurance Consultant

Whether a consultant, advisor, broker or agent, the quality of advice provided by your insurance representative is their most valuable asset.

A good consultant or advisor will understand which insurance policies best fit your business and will tailor coverage options to maximize protection and minimize cost. When evaluating which brokerage firm you partner with, ask yourself whether or not your team feels the value in the service they provide.

Here are some of the “pros” of hiring an insurance consultant:

• Licensing requirements, coupled with experience in their field, make consultants well suited for business owners with complicated insurance needs.
• Consultants can help strategically plan for the future needs of your business, including short- and long-term financial modeling and risk management.
• A good consultant will use competitive benchmarking to assess and improve the role of benefits in employment recruitment and retention.
• When you hire an insurance consultant, they work directly for you – not the insurance companies. They can still negotiate lower rates for clients based on relationships with insurers.
• Consultants provide a partner approach and will be involved in your business plan several times per year.
• A consultant can be useful if your operations require specialized expertise based on risks in your industry.

Here are some of the “cons” of hiring an insurance consultant:

• Not all small businesses need to the expense of an insurance consultant. Sometimes an agreement with a broker will suffice.
• Picking the right consultant is crucial. They require deep expertise surrounding businesses like yours in order to solve your specific insurance and benefits problems and provide value.
• Consulting fees are often tied to the complexity of the services or project.
• You can't buy insurance from an insurance consultant. A consultant must hand over the account to an insurance agent or insurance carrier directly to initiate the policy. But they can help you find the best policy.

How to Find an Independent Insurance Consultant

Independent insurance consultants and advisors can help you choose coverages and risk-management strategies that make the most sense for you.

There are about 413,000 insurance consultants and associated businesses in the U.S. as of January 2021, according to IBIS World. How do you find the independent insurance advisor that is right for your company?

When you are looking to hire a broker, consultant or advisor, you can focus on three things: what they do, how well they’ve done it, and how they get paid. Insurance buyers should compare brokers and consultants based on need, professionalism, demonstrated knowledge in insurance, understanding of your industry, transparency and fees and or commissions.

The quickest way to find qualified insurance consultants is through Mployer Advisor, a free marketplace that allows employers to compare brokers, consultants, and advisors in one place. Looking for more exclusive content? Check out what’s trending on the Mployer Advisor blog, and be sure to catch the latest episode of This Week in Benefits.

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