Insurance Terms and Terminologies

Making a vital decision on using an agent or a broker


Decide whether you will use an agent or a broker.

Generally, the larger your business is the more important it is for you to use a broker instead of an agent. Use a broker if you:

– have a large number of employees
– have a large number of vehicles and drivers change
– are in an industry with exceptional risk
– can’t review the business insurance plan regularly

Consider using an agent if you:

– have a small business with few or no employees
– have few or no vehicles
– are in a business where the risks are well known
– will regularly review the business insurance plan.
– Interview and Investigate Several Insurance Professionals

Get referrals for insurance professionals from others in your business, or your local chamber of commerce. Arrange meetings and interview each referral personally.

All states have a department of insurance that keeps records of all agents and brokers licensed to do business in your state. These records are typically online and easy to search.

Investigate their background and look for:

– A current, valid agent or broker license.
– Complaints or ethical violations.
– Administrative discipline.
While complaints are not uncommon, administrative or ethics charges are usually a warning to choose another professional.

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