Resources to Help Employers

Finding a New Insurance Broker

Choose the Right Insurance Broker + Navigate the Business Insurance Buying Process

Employers have a variety of factors to consider when it comes to making this decision, including cost, experience, trust and more.

Whether you are looking for a new health insurance broker or are not sure where to start, Mployer Advisor provides a wealth of resources to help you find a new insurance broker who meets your company’s needs.

How Can I Find the Right Insurance Broker?

There are many reasons to search for a new insurance broker. However, the insurance buying industry is
notoriously opaque, and there are countless brokerages out there to sort through.

How can you make sure you choose the right one?

Mployer Advisor helps employers navigate the complex insurance buying process. Search for brokers near you to read independent, unbiased reviews and compare top-rated brokers.

Our goal is to help you find a new insurance broker who understands your business and will get you the coverage you need.

Find a new insurance broker who can help you reduce your premiums and insurance fees. A broker who minimizes your risks without pushing you to pay for policies you don’t need. A broker with experience in your industry and company size.

Start your search for a new insurance broker today with Mployer Advisor.

Search for Brokers Near You

What Qualities Should I Look For in a New Insurance Broker?

Knowledgeable. When searching for a new insurance broker or consultant, you should look for an expert who can communicate complex terms and topics in an understandable way.

Trustworthy. It’s essential that you find an insurance broker you can trust. The best brokers will provide reliable, professional service and genuinely look out for your best interests.

Accessible. If a broker doesn’t reply to your emails or return your calls, it’s likely not a good fit.

Experienced. A broker with experience in your industry and company size can bring an enhanced level of service and expertise to the table.

Transparent. An insurance broker should be upfront and honest about costs, benefits and everything in between.

Search for Brokers Near You

5 Questions to Ask a New Insurance Broker

When searching for a new insurance broker, several key questions can help you evaluate
your options and make the best choice for your business.
  • 1

    Industry-specific experience can elevate the level of service and expertise a broker offers your business. Having experience in your industry helps brokers be more aware of your specific needs when researching and presenting policy options.

    Plus, they will likely be more equipped to troubleshoot issues and answer questions that may arise. Thus, considering industry experience during your search for a new insurance broker can help you find a broker that can be a major asset to your business.

  • 2

    Feeling supported by your insurance consultant or broker is crucial. It is not an optimal experience if you have to speak with a different person every time you have an insurance question. Thus, when searching for a new insurance broker, you should always ask if you’ll receive a dedicated account manager.

    Having a designated account representative gives you a consistent point of contact with a professional who’s familiar with your business. You can establish a relationship with this broker and, most importantly, build trust. Working with a broker you can trust and who represents your company’s best interests is invaluable.

  • 3

    This question can give you an idea of the level of experience and consistency the brokerage firm can offer your company. Look for firms who have established a track record of success and stability over time.

    However, just because a brokerage has been around the longest doesn’t necessarily mean it’s the best option for you. As with any major decision, it’s important to consider a variety of factors before choosing a new insurance broker, including transparency, cost, trust and more.

  • 4

    Most brokers receive their income through commission. This commission is built into the cost of your insurance plan, meaning you don’t directly pay for the broker’s services. Rather, a percentage of the insurance premiums paid by policyholders will go to the broker.

    However, some brokers charge additional fees for certain services. To make sure you won't be surprised by unexpected costs, be sure to ask the broker about any additional fees you may incur for using their services.

    Use our fee and commission calculator to estimate broker costs for your business.

  • 5

    Commercial insurance brokers provide varying levels of support when it comes to claim handling. Therefore, when choosing a new insurance broker, it’s important to know which ones are equipped to help you through the claims process. Some brokers may simply report the claim on your behalf, while others take a more active role in advocating and negotiating for you.

    To put your business in the best possible position, look for a broker offering a high level of claims management support. They should serve as a liaison between you and the insurance company, taking a hands-on and proactive approach by advocating for you and helping you achieve a satisfactory outcome.


 

What is a commercial insurance broker?

A commercial insurance broker helps businesses evaluate and select insurance policies. These professionals do not represent an insurance company. Instead, brokers present a variety of insurance options to their clients, helping employers choose policies that best fit their needs. While some insurance brokers or consultants work independently, most work for a brokerage firm.

What’s the difference between an insurance broker and an insurance agent?

An insurance agent represents one or more insurance companies, while an insurance broker represents clients who are looking to purchase insurance.

In other words, insurance agents offer policies from specific insurance companies. Insurance brokers have access to products from multiple companies. Brokers assist clients as they compare different policies, helping them choose a plan that works best for their needs.

What are the advantages of working with an insurance broker?

When it comes to business insurance, working with a broker or consultant offers many advantages. Below are key benefits that employers can expect when working with an insurance broker.

1. More Choices

Unlike agents, brokers do not work for one specific insurance company. Therefore, they’re able to present you with products from multiple insurance companies. As a result, you have a wider variety of options to compare and consider.

This helps you find the plan that works best for you and your business, often with lower rates, better coverage or both. Plus, with a broker, you will be getting impartial advice that puts your company’s interests first, not an insurance company’s.

2. Comprehensive Coverage

Working with an insurance broker helps make sure your employees and your company are adequately covered. This is tremendously important because being underinsured can be disastrous for a business.

Securing the right business insurance protects so many aspects of your company. Whether you experience storm damage, theft, burst pipes, an employee slip-and-fall, a cybersecurity breach or other unexpected event, you do not want to be underinsured.

An insurance broker will provide guidance on what coverage you need, making sure all areas of concern are covered in order to mitigate risk and guarantee compliance.

3. Expertise

It’s no secret that insurance is complicated. When you’re sorting through different plans and deciding on the insurance you need, it helps to have an expert working with you.

In addition to the risk management expertise described above, brokers can simplify the entire process of securing commercial insurance by translating industry jargon and helping you better understand your options. This equips you to make more informed decisions for your employees and for your business overall.

Even after you’ve chosen your plans for the year, your broker can continue to be a resource regarding claims or insurance questions that may arise.

4. Streamlined Processes

How often do you hear executives complain about having too much extra time? Yeah, neither do we.

A major benefit of working with an insurance broker is that it saves you time. A broker will do the research to find plans and policies for you, compiling different options and presenting you with choices. Plus, insurance brokers act as intermediaries between you and the insurance companies. This saves you the time and hassle of communicating directly with insurance companies.

In other words, a broker streamlines the insurance buying process, so you’ll have more time to spend on your business.

How do I pay an insurance broker?

Typically, you will not pay your insurance broker directly. Instead, most brokers are paid by commission, in which they receive a percentage of the total price of the policy you choose. Their commission is included in the cost of the policy, meaning a percentage of the premiums paid by policyholders will go to the broker.

Sometimes, certain policies will come with a larger commission percentage. This can create a conflict of interest, since the broker may be inclined to steer you toward choosing a policy that will earn them more money– even if it’s not the best choice for you. That’s why it’s crucial to find a reputable broker who you trust, with a strong track record of client satisfaction and transparency.

How much commission does my broker make?

Commission rates vary based on a number of different factors. Your broker should provide full disclosure on commission rates at the point of sale.

Learn all about insurance broker fees and commission or check out our commission calculator to estimate broker costs for your business.

I’m self-employed. How can I find an insurance broker?

Working with a broker for business insurance can help self-employed individuals sort through their options without feeling completely overwhelmed. However, when it comes to finding a new insurance broker when self-employed, many people don’t know where to begin.

Mployer Advisor’s directory of insurance brokers is a great place to start. Easily search for a broker near you to see the different firms in your area. Each brokerage will have reviews and an M Score, a rating of the brokerage’s experience across employer sizes, insurance types and industries. The higher the score, the broader the firm’s experience.

What are the most common types of business insurance?

General liability insurance

Commercial general liability insurance protects businesses against a variety of common claims. If someone gets hurt on your property, for example, general liability insurance can help cover the medical and legal expenses that may ensue.

Property insurance

In the event of damage from a fire, burst pipes, a storm, theft or vandalism, commercial property insurance protects your building, equipment, furniture and more. Some events, like floods and earthquakes, usually are not covered under these policies. Companies located in areas where these events are common should consider separate policies to ensure their property is protected.

Errors and omissions (E&O) insurance

Also known as professional liability insurance, E&O protects businesses against claims of faulty advice, mistakes or negligence. It helps cover legal expenses such as attorney fees, court costs and settlements. E&O insurance is typically required for businesses that give advice or provide services.

Worker’s compensation

This type of business insurance covers the costs of work-related injuries, illnesses or death. Often referred to as workman’s comp, it can cover a range of expenses from missed wages to death benefits.

Employee health insurance

Many businesses offer employer-sponsored health insurance, in which the employer chooses the plan and shares a percentage of premium costs with employees.

Product liability insurance

Businesses that produce products in any capacity should have product liability insurance. In the event that a company’s product results in damage or injury, product liability insurance covers consequential costs to the business such as medical expenses and legal fees.

Vehicle insurance

If your business has company vehicles, they should be fully insured.In the event of an accident, commercial auto insurance covers damage to your company’s vehicle, damage to the other person’s vehicle, driver injury and more.

Business interruption insurance

In the event of severe property damage due to a disaster or other occurrence, your business may have to close for a period of time. Business interruption insurance, also called business income insurance, compensates for the company’s lost income during this time.

Cyber insurance

Data breaches are unfortunately becoming more and more common in today’s world. If a cybersecurity issue affects your business, cyber insurance can help with legal costs, data recovery, customer notification and more.

Insurance Broker Statistics

75% of U.S. businesses are underinsured. (Marshall & Swift/Boeckh)

44% of small businesses have never had insurance. (Next Insurance)

55% of small businesses have experienced a data breach. (Insurance Journal)

82% of employees believe they are paying more each year for lower health plan value. (AHIP)

96% of employees want a more complete understanding of their health benefits. (AHIP)

87% of employees would like to see their employers and insurance providers work together to lower health plan costs. (AHIP)

4 out of 10 small businesses are likely to experience a property or general liability claim in the next decade. (The Hartford)

Burglary and theft affects 1 in 5 small business owners. (The Hartford)

Fire claims are ranked in the top 5 of both the most common and most costly claims. (The Hartford)

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