What Does an Insurance Broker Do?

By HUB SmartCoverage Team on June 12th, 2017

For many people, insurance is an intimidating concept. We know we need insurance to protect our car and our house, and to provide for our loved ones if we pass away, but our knowledge often ends there. If you’re one for whom insurance is an enigma wrapped in a riddle (or for whom insurance makes doze off), you may want to hire an insurance broker to navigate the process of acquiring insurance and dealing with your provider.


Insurance brokers help to steer their clients in the right direction with professional knowledge and experience. Insurance brokers pride themselves on providing the best value to their clients in relation to insurance coverage. Specifically, insurance brokers typically perform the following services:


  • Help clients determine the most suitable insurance policy for their needs
  • Compare insurance rates to come up with the best deal for clients
  • Provide input for final decisions made by the client
  • Explain terms, conditions and small print that clients do not understand
  • File claims on behalf of clients
  • Ensure that claims are adequately handled; help the client reach a fair settlement
  • Represent the client’s interests in an unbiased manner

Though insurance brokers can be extremely helpful, they should not be used as an excuse for you to remain ignorant about your policies. It’s always valuable to know what the money your spending is actually doing to protect you. And, a basic understanding of insurance will also ensure that your broker is prioritizing the things that most benefit you.


But even when you have a broker to represent you, having a basic understanding about your existing policies, and insurance in general, is a great way to safeguard against any complication that might arise from working with a broker. A good first step is to compare insurance rates to get an idea of the options out there.


In her book, Money Rules, Gail Vaz-Oxlade suggests that you ask the following questions when choosing a broker:


  • How much will you make off the sale of this insurance contract?
  • What other incentives will you receive?
  • How many different insurance companies do you regularly deal with?
  • What percentage of your business do you book with each of those companies?

An effective insurance broker can be a tremendous asset. The finer points of insurance are difficult to understand, and frankly, boring. If you are able to work with a broker that accelerates the process and shepherds you to a beneficial destination, you will be happy for their help. Just don’t mistake a broker for the perfect solution to every insurance issue you will encounter from now until the end of time. Gaining a basic understanding of key terms and processes can only benefit you.



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