If you run a business and you struggle with finding a suitable health insurance plan for the company, and you are not one of those people who can handle it by themselves, you should consider hiring a professional to help you. That professional can be a broker or agent. If you are wondering what is the difference between the two, we are here to explain.
We are providing you with advice on how to hire a broker, and for the start, we offer you rundown points you should know before hiring one.
Guide For Hiring A Broker
The first step you need to take is to do a research of leading brokers and captive agents in your industry. Ask companies similar to yours for referrals. Check their licenses and references by simply researching Google, and see what will pop up.
Also, you should contact state insurance customer call-center and ask about specific professional, find out if clients have ever sued them, and other things, like what is their niche and do they provide specific help for your company’s needs. Explore their technicality, find out do they meet the needs of your line of work. Do they have experience with the products your company offers? Also, you need to consider is their system designed for small or large companies.
The Difference Between Brokers And Agents
One more thing you should be aware of is how they handle the renewals. Usually, the process of insurance renewal begins 90 to 120 days before the due date with an aimed plan to meet the goals for the year. You don’t want to find yourself in an unpleasant situation caused by renewal notice in the last minute.
Ask about their business model, meaning how are they paid for assisting you, and do they receive commissions from the insurance company. If you are wondering what is more suitable for your business, a broker or a captive agent, make sure you know the difference between them first.
Facts About Brokers
Brokers are more self-contained, working for several companies at the same time, and they are the most competent to show and provide you with more alternatives as well as the best view of a marketplace. Brokers can help you evaluate the main insurance carriers in your region.
Typically, the insurance company pays them on the commission, but some of them take the full charge. Make sure you got the notice about that as well.
Facts About Captive Agents
Usually, captive agents sell one good or a firm, which means they will have a closer relationship with your business. Their assistance costs less and their advantage is having entrance to some markets your competition doesn’t have access to.
Captive agents are remunerated by the insurers. If you choose to hire a captive agent instead of a broker, make sure you interview several, to discover what they provide and is it suitable for your company. There is a wide range of services and they all vary from one health insurance broker or agent to another. Your task is to choose a kind of support that meets all your company’s needs.
You want to hire a broker that is a sharer, not just a seller. Why? Because you want to have a business partner that will share information with you, not just try to sell you something in order to earn a commission. That person needs to be someone who will ensure that your employees have adequate health care, that you respect the law, and still be competitive in your industry.
A lot of things to cover? Feel free to let us know what is bothering you, and we will do our best to help you.