Selecting the right insurance broker is all about meeting your needs as a customer. At minimum, your broker should:
Provide trusted advice: Your broker should be properly trained and licensed to help you choose the coverage you need. Brokers are required to upgrade their knowledge annually to maintain a licensed status.
Be focused on you: Your broker should take the time to get to know you, your exposure to risk, and your insurance needs. Your broker is professionally bound to act in your best interest, and to find coverage options that suit your needs at the best available price.
Have a commitment to choice: Your broker should proactively create relationships with different insurance companies that are licensed, financially secure, and have a proven claims record to best serve clients.
Assist you in a claim: Although no one hopes to ever need to make a claim, if the event you do, your broker should be there to help guide you through the process, and obtain a fair and timely settlement.
Insurance brokers believe in being fully transparent about how they are compensated, and the value they bring to you as the consumer. Brokers should explain their revenue model with you, if asked. In general, however, the property and casualty (P&C) insurance industry has developed a basic commission structure to compensate brokers for the work they do:
Commissions and fees: Your broker is paid a commission by the insurance company that agrees to underwrite your policy. Your broker may also charge you a service fee, which must be clearly identified in writing and agreed to at the time of purchase.
Contingent commission: Your broker may be paid a contingent commission by the insurance company based on the quality of business the broker has placed with the company over a period of time. The factors that determine whether a contingent commission will be applied are not known to the broker ahead of their recommendation, and do not factor into the final recommendation.
Find a Broker
Not sure where to start locating a licensed broker nearby? Try our Find a Broker tool by clicking here.