You are paying for your broker – are you getting good value?

May
2010

Part of every premium dollar you pay goes to remunerate your broker – usually between 7.5% and 20%.

Here are 5 tips on how you can maximize the value from our relationship:

Count on Us to be a Trusted Advisor - You’ve paid us a commission (or in some cases a fee) to be the insurance buyer and risk manager for you. We can provide advice on a range of issues, and will always be your advocate when, and if, a claim occurs.

Embrace value – too often people buy insurance based on the lowest price rather than on best value. It is unwise to pay too much; it is worse to pay too little.

Promptly Report all Claims to your Broker – Clients sometimes are reluctant to report losses because of concern for how the claim will impact future premiums. As your broker, however, we can give you advice and together decide whether the claim should be presented to the insurer.

Use your Broker during the Claims Process - There can be several players involved in the processing of any claim (adjusters, claims examiners, appraisers, investigators, lawyers, restoration contractors, etc.) Your broker is your advisor and advocate in this process. Please call us to explain the process and help you understand what you are entitled to. And if you are ever unsure that the claim is progressing as it should, we are your first point of accountability.

Be Deliberate with Deductibles – We have many clients who would not think of submitting a small claim, because they don’t want to spoil their loss record. That sensible thinking, however, should be supported by carrying higher deductibles. If for example, you would not submit a claim that is less than $1,000, why would you carry a deductible lower than $1,000? Higher deductibles reduce premiums.

Warren Buffet once said: “Any insurance policy is a promise, and as everyone knows, promises vary enormously in their quality.”