What Your Insurance Broker Should Do For You

5 June, 2018

Insurance Brokers or Agents earn commissions on the premiums you pay for insurance policies. What services should you reasonably expect your broker or broker to provide in return for those commissions? The following are main services expected from a competent broker or agent in Ghana market

1.Broker Knows Your Business

Your broker/agent should understand your business. He or she needs to know what your company does, how it operates, where it is located and the risk you are exposed to. Your broker must rely on you to be forthcoming with information. Be prepared to tell your broker if your business has any unique risks or in partnership. etc

2.Conduct a Risk Assessment

Once your broker understands your business he or she should help you assess your risks. Ask your broker what types of losses are typically incurred by businesses like yours and what you can do to prevent them. Your broker should help you review your options for managing risk. For instance, your broker may suggest that you set up a loss control program, buy an insurance policy, or transfer risk to a carrier.

3.Analyze Your Coverage Needs

Once your broker has a basic understanding of your company's risk, he or she should analyze your insurance needs. Some types of insurance, such as motor insurance and Fire Insurance for public buildings, are compulsory. Others are not mandated by law but are critical for your business. To make the most of your insurance budget ask your broker to submit more than one quote from different insurance companies.

4.Shop for Coverage

The next step is to submit applications on your behalf to one or more insurance companies. If you are using an independent broker he or she should be familiar with the products offered by the insurers the agency represents. Your broker should also know which of these products will best suit your needs. Preferably, your broker will obtain quotes from several insurers. However, this may not be possible if your business is risky, has unusual characteristics or a poor loss history.

5.Review Quotes and Select the Best Option

Once your broker has received quotes from the insurers he or she should help you compare them. It is your broker's responsibility to ensure that the quoted premiums include the risk areas you requested. If any of the premiums are too high or the coverage is lacking, your broker should try to negotiate a better deal on your behalf. Once the quotes have been finalized your broker should help you select the policy that best suits your needs.

6.Monitor Your Insurance Coverage

Your broker’s job doesn't end once you have purchased a policy or insurance. Your business is likely to grow and change over time and your insurance needs to adapt to those changes. Your broker should contact you at least once a year for a renewal update. If your insurance has been written by the same insurer for several years ask your broker about marketing your business to other insurers. The marketplace may have changed since your coverage was written and better options may be available.

7.Help with Claims

If your company or an individual sustains a loss your insurance broker should provide guidance in completing claim forms and submitting them to the insurer. The broker should monitor the claim to ensure it is processed promptly. If your claim payment is delayed or denied, perhaps due to missing or inaccurate information, your broker can talk to the adjuster on your behalf to speed up the payment process. Once your claim has been paid, your broker can help you determine whether the payment amount is fair and reasonable.

8.Provide Guidance

Your broker should be available to answer questions related to your insurance coverage. For example, if you intend to travel outside Ghana on business your broker should be able to tell you whether your existing coverage will apply in a foreign country. Be sure to contact your broker right away if your business takes on a new risk (such as buying a new building) or undergoes a significant change.

9.Serve as Your Advocate

Finally, your broker should serve as your advocate in dealing with insurers on a variety of issues (not just claims). He or she should work with insurance company employees to resolve problems on your behalf. For example, in settling difficult claims , your broker can aid in speeding up the process since he is an expert and knows ins and out or advice on change of insurer during renewals

Disclaimer: "The views expressed on this site are those of the contributors or columnists, and do not necessarily reflect insureghana's position. insureghana.com will not be responsible or liable for any inaccurate or incorrect statements in the contributions or columns here."