Are you planning on purchasing insurance for your business? If so, there are a number of considerations that you must make. The first being whether you are going to use an insurance agent or an insurance broker. However, before making a decision, you should be certain of the good names for companies in this field. You should also be sure you fully understand the difference between these two professionals.
The first thing that you should understand is the fact that the rates that are charged by various companies are extremely regulated, just as they are with any financial professionals. When you receive a quote from any company, this is the rate that they are allowed to charge for the specific coverage offered by the Insurance Commissioner. This company is not able to quote any different rate for the same coverage.
Both insurance agents and insurance brokers alike receive commission for the sales they make. This should not be a factor in your decision to use one insurance sales service over another. Regardless of which route you take, these professionals will both be earning commissions on your sale. Do not let this dissuade you from using these services. This will not impact the services that they provide you, despite popular misconceptions. It is important to remember this.
Same Rates No Matter What
If you acquire quotes from two different insurance agents, that provide you with different prices for the same policy, there is something wrong. Insurance agents work for the insurance company. The same rate has to be charged no matter the costs that a company may have paid in training or in commissions for the particular agent. Agents are only able to offer services from a company that they have been appointed to and are then paid directly by that company. This is something you definitely want to know so you do not wind up being swindled by a shady healthcare business.
Insurance Broker Differences
An insurance broker is somewhat different. A broker does not work with any insurance company, but rather with the customer. The insurance broker is able to do the exact thing as the agent. They will provide you with a rate and then receive a certain commission from the insurance company. They will be able to charge a broker fee and in order to do this, they have to make the amount of fee they charge completely clear to you. The broker fee is not able to be lumped in with the quote that is being given if it is an actual premium that is being changed by the insurance company.
Broker Dependent Fees
Even though the broker is going to charge a fee, the amount of the fee will be dependent on the broker, as well as the relationship you have with the broker. These fees are dependent on their individual sales representative agreement. You should carefully consider whether it is in your best interest to work with an agent or a broker. A broker has a much wider array of insurers that they will deal with. They will be able to purchase insurance for you from various markets that are typically not going to be available.
To Find An Insurance Agent
To be certain you are finding an insurance agent you can trust, first make sure that they have their agent license from the department of financial services. In certain states, agents must go through a fingerprinting process in order to become certified. Other states require prelicensing education programs for insurance agents. Try to find out what is required in your state, and then use these to measure your insurance agent against. Finding the best insurance agent is not an easy task. Make sure you find out if you agent is certified to be sure you can trust them.
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