How To Choose And Maximize Use Of An Insurance Broker

Step 1: Determine your needs.

For instance, is it about life insurance? Health Insurance? Automobile, homeowners or other property and casualty insurance?

Step 2: Decide what criteria are important to you.

Criteria to consider are:

• License: Since insurance brokers are required to be licensed in each state, it is a given that the broker has to be licensed, and in good standing.
• Experience: how long has the person been a broker in the area?
• Expertise: in addition to the expertise required for an insurance license, does the broker have additional designations showing additional knowledge? In the life and health areas, this would be a designation of Chartered Life Underwriter (CLU). In the areas of property and casualty, the designation is Chartered Property and Casualty Underwriter (CPCU). (To find a CLU, see http://www.cluinstitute.ca/ . To find a CPCU see: https://webster.cpcusociety.org/source/Custom/cAgentBroker.cfm ).
• Have complaints been filed against the person with the state insurance department (click here to locate your insurance department) or the Better Business Bureau (www.bbb.com )
• Is the person easy to talk with? A lot of insurance may seem like Greek to you. A good broker can interpret what you need to know for you, in language you can understand.
• Is the person responsive? Even during the evaluation process, pay attention to how long it takes the broker to get back in touch with you.
• Is the broker's physical location important to you? Will he or she come to your home or place of business?
• How many companies does the broker have access to? The more, the more likely he or she will be able to obtain the product you need at a suitable price.
• Does size of the broker's business matter to you? The more business the broker does, the more clout it has to get you the coverage you need, at the price you're looking for -- and to help with claims.

Step 3: Talk with your friends, business colleagues, attorney and/or an accountant to get their recommendations.

In addition to a name, ask about the experience each person has had with the recommended broker. If you hear good things about one particular insurance broker from lots of different people, look up him or her.

Step 4: Meet with several candidates.

Before the meeting:

• If you have existing insurance, pull out a copy of each policy.
• If you have a summary of existing insurance, pull that out as well.
• Make a list of the subjects you want to talk about.

Ask each one to assess your needs, come up with a recommendation as to what kind of insurance would be best for you. After you reach agreement about the type and amount of insurance, ask the broker to get you several competitive offers.

Let the broker know that if you agree to work with him or her about renewable insurance (such as health, auto or homeowners insurance) that you want to know competitive prices every year.

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