Well there are a few things to take into consideration.

On

• Experience
• Field of expertise
• Who is being represented
• How Complicated is your business structure and operations
• If you have past claims and audit issues
• If you have the time to deal with multiple carriers and paperwork
• Ultimate Bonus Secret Reason! (Revealed at the end)

Let's unpack this a little...

Experience

I don't think this needs explaining. Really, would you visit a doctor that doesn't have experience? Or even if its a chef without experience, in a restaurant that your at, how happy do you think will you will be with your dish?

So yup, just as in every other industry, experience plays a role on the quality of care and end product a customer, client, or even patient gets at the end of the day.

Having owned a few small companies in the past as a handy man and now as an independent working in commercial insurance and seeing the back end...wow. The ins and outs are abundant.

Between policy holder, business entities, policy limits, underwriters, policy packages, audits, workers comp estimates; And explaining and figuring out, if, at the end of it all, if things are a right fit for the client.

Oh!...And all that just for quoting; We've yet to get into the fire engulfed hula hoops for servicing clients after binding! LOL.

Actually, this very first point, (experience), rolls right through and into the rest of the points we'll be exploring!

It's very easy to say, hey if it's just a small new business you own, why not go ahead and give a Newbie a chance...well, are you sure? And would you put your money where your mouth is on that advise?

If you do, I urge you to sign over your home to a relative or faithful friend for safe keeping, cause if your broker doesn't have the experience to make sure your protected correctly, yes, what you own is at risk!

Field of expertise

This could actually be filed into experience but since it's just as important since it depends what field of a particular industry one has most of their experience in.

To put it mildly, every time one of us overhears what seems to be a hard phone call in terms of the person on the other end of the call not understanding even the basics of commercial insurance; Someone always yells out "What, was that a life insurance agent?".

Now definitely not demeaning anyone here at all. Guess what...I sure do bet they say the same about us when we travel into their territory.

Basically as there are chapters in a book. Each chapter in the Insurance world can be miles away from each other.

And besides it's common sense. Do you think you would get a quality sushi experience at a pizzeria? Yes both food industry yet worlds apart.

Who is being represented

Here we have some options. Besides experience and expertise now you get to choose from a Broker or direct from the carrier.

Agent: Agents can work under an independent Broker or for the carrier.

Broker: Independent and intermediary between the carrier and client. But has a due diligence agency to the client. So a broker basically represents you and is truly on your side.

Direct from the carrier: There are a lot of well run insurance companies out there and they will help quite a bit. But at the end of the day if you don't know what the fine print says or means(since it's mostly legal jargon...well, good luck.

How Complicated is your business structure and operations

Did you know you don't necessarily have to follow the crowd and jump off a bridge? A lot of people ask do I set up an LLC or Corp or Inc. Well guess what, unless you can truly sit at the helm as a 9 to 5 CEO as well as take full advantage of the tax benefits etc...

A good umbrella policy paired with a super simple Sole Proprietorship can shield from any liability a corp would and make the upkeep of your business structure easy peasy.

If you have past claims and audit issues

Why do people fear the "Tax Man"...because they are actual auditors!

Or how about this; Would you sit in an interrogation room for police questioning without a lawyer? Sure you could do it. I dare you!

As far as claims go, well things happen sometimes. Well working with a Broker can be likened to having a good relationship with a bank branch manager.

Even a tiny blemished account could mean doors slamming in your face if on you own. But with an experienced Broker, they'll know what carriers would still take on your risk or how to explain the issue when asked.

If you have the time to deal with multiple carriers and paperwork

If your still on the fence, there's absolutely no reason to explain such an obvious thing.

Besides that. consider as well, not quitting your day job. Business can be brutal and has left many a men and women in the dust.

AND NOW FOR THE BONUS ROUND!!!

Drum roll please.....

Certificates! Certificates! Certificates!

How much business do you do? Do you want to do more? Well, all those jobs need certificates. And even future jobs. Many bid requests likely require proof of insurance via a certificate.

So you see, it's quite common to have 4-5 plus different policies. General Liability, Excess/Umbrella, Disability, Workers Comp, Auto

99% of the time, your Broker will be your authorized representative for all of these policies. That means just ONE phone call or just ONE email or just ONE fax.

But then again, maybe inefficiency is your thing!

To end this article, let the new mantra be what successful business leaders always do..."Always, always use a professional"