One of the most important decisions a company makes is selecting their insurance broker. Smaller companies generally have insurance agents and larger companies have insurance brokers. Most large companies have brokers rather than agents because they have many "lines" of coverage. This is obtained from many different insurance companies — not just one. An agent normally represents only one insurance company (or a handful if they are a multi-line agent); a broker represents many different insurance companies. Some key questions to ask prospective brokers are:
- How will they structure your company's insurance program?
- How will they market your company to the insurance carriers?
- How creative are the individuals on the team — can they provideexamples ofhow they have enhanced another company's insurance coverage and reduced the insurance costs to make the program more cost effective?
- Who is the team that will service your account?
- Do they have experience in your industry?
- Does the firm have global capabilities (necessary if your company has operations outside the US)?
- Do they have a timeline of all activities they propose?
- What are the firms capabilities in the following areas:
- Claim Advocacy – claim specialists to help difficult claim situations
- Claim Reviews – reserve, claim closureand best practice reviews
- Loss Control – specialists to help developstrategic plans in: Ergonomics specialists, Repetitive Motion Injuries specialist, Loss Trend Analysis, Slip & Fall Prevention, Air Quality Programs, Lock-out/ Tag-out Expertise, Safety Consulting on key OSHA Requirements, Safety Culture Consulting
- Post-Loss Cost Containment – systems to reduce WC costs such as described http://www.reduceyourworkerscomp.com/employees-back-to-work-sooner.php
- Insurance Policy Review
- Coverage Analysis
- Certificate of Insurance Distribution
- RIMS Capabilities (Risk Management Information Systems)?
- Do they have experience withyour existing carrier?
- Fees and remuneration— are incentive-based optionspossible?
- Do they have captive affiliates?
- Do they have industry groups for your industry?
- Are there other services that differentiate their firm?
- Is the broker tied into the net — how user-friendly and complete is their website? Do they have lots of educational resources available for clients?
- Are they easily accessible via email?
- How easy is it to reach your team by phone?
These are some of the things you will evaluate when selecting the best broker for your needs. The biggest broker isn't necessarily the most qualified for YOUR situation, so meet with several to make sure their capabilities meet your needs. For more cost savings tips go to WC Cost Reduction Tips.
