How to work with a business insurance broker

Businesses face an array of risks, all with the potential to cripple them financially. The smart business move is to transfer those risks to an insurance company. But which insurance company to choose? What types of insurance coverage do you need? How much coverage do you need? These are critical questions for business owners who may not have knowledge of or experience in business insurance concepts.

That's why working with a business insurance broker can simplify finding the right type and amount of coverage for your business while ensuring you get the most value. A broker acts as a middleman between you and the insurance market, providing expertise, comparison, and negotiation to help secure the most appropriate policies at the best rates.

Here's a guide on how to work effectively with a business insurance broker.

A business insurance broker is your advocate, working independently of any insurance company. Unlike an insurance agent who represents one company, brokers have access to a broad market of insurance providers, allowing them to assess multiple policies to find one that fits your needs.

Brokers bring industry knowledge, allowing them to recommend types and levels of coverage specific to your business risks, whether that involves general liability, property, workers' compensation, or specialized coverage like cyber insurance.

Brokers’ expertise often includes industry-specific knowledge, making them well-suited to advise on what types of risks are prevalent in your sector. They are also there to support you through the policy lifecycle, including helping you file claims and manage renewals.

Choosing the right broker is essential. Start by looking for brokers who have experience in your industry. For example, if you're in manufacturing, a broker who understands manufacturing risks will know what coverages are necessary (e.g., equipment breakdown insurance or product liability insurance).

Look for certifications such as Chartered Property Casualty Underwriter (CPCU) or Certified Insurance Counselor (CIC), which indicate a commitment to education and professionalism. Request references from clients in similar fields and research reputations by looking at industry groups or online reviews.

When you first meet with a broker, come prepared. Gather information about your business, including revenue, number of employees, current insurance policies, and any claims history. Be ready to discuss your operations in depth to give the broker an accurate understanding of your risks and needs.

You also need to consider your objectives. Are you looking to reduce costs, expand coverage, or improve claims support? Defining your goals helps the broker tailor their recommendations accordingly.

One of the broker's primary responsibilities is identifying gaps in your current coverage and recommending necessary policies. Discussing the specifics of your business operations will help the broker determine if you need specialized coverage. For example, a tech company might require cyber liability insurance, while a construction company might need builders' risk insurance.

A good broker will walk you through each recommendation, explaining why it's relevant and what it covers. This step is crucial for understanding your insurance policy and ensuring you're not overinsured or underinsured.

After assessing your needs, the broker will present policy options from various insurers. They'll help you compare each policy's costs, terms, and coverage limits. Brokers can often negotiate better rates and terms, leveraging their relationships with insurance carriers to your benefit.

When comparing policies, a broker will help you look beyond the premium. They can help you compare deductibles, exclusions, and claims processes. For instance, a policy with a low premium but a high deductible might not be beneficial if you're likely to make frequent claims.

Before signing, carefully review the policy with the broker. Confirm that it covers all your risks and that you understand the limits, deductibles, and exclusions. This is the time to ask questions and clarify any confusing terms. For example, ask what constitutes a "claim event" or if certain incidents, like third-party data breaches, are covered under a general cyber policy.

Once you have a policy in place, keep in touch with your broker. Inform them of any changes to your business, such as expanding services, moving locations, or hiring more employees, as these can affect your insurance needs and costs.

Regular communication is essential because it allows the broker to adjust your coverage as your business grows or shifts. Many brokers will also check in at renewal time to reassess your coverage and search for better options, ensuring your policy remains competitive.

Brokers can be an invaluable resource in the unfortunate event of a claim. They'll guide you through the claims process, help you gather documentation, submit necessary forms, and negotiate with the insurer if needed. This support can expedite the claims process and increase your likelihood of receiving a fair settlement.

Working well with a broker is about building a long-term partnership. A strong relationship allows them to understand your business deeply, anticipate potential risks, and make proactive recommendations. This familiarity leads to better service and more customized solutions over time.

That's how OneGroup, the business insurance subsidiary of Community Bank, sees its role as it collaborates closely with businesses to address their unique insurance and risk management needs.* Through tailored solutions, OneGroup assists businesses in managing and mitigating various risks, such as property damage, liability, and employee-related exposures.

By offering customized policies—from general liability and workers' compensation to specialized industry coverage—OneGroup ensures that its business clients are adequately protected without overpaying for unnecessary services. Additionally, OneGroup provides risk management and advisory services, helping clients proactively identify potential issues and implement preventive strategies. This comprehensive support empowers business owners to focus on growth and sustainability, knowing they have a trusted partner dedicated to safeguarding their business assets and continuity.