Commercial Insurance Brokers – Facts

When it comes to running a small business, many business owners are forced to wear many hats in order for the company to run smoothly. If you find yourself in this situation, you know how precious time can be. Many business owners find it difficult to spend the time necessary to obtain the right commercial insurance to protect their business and end up soliciting the help of Commercial insurance brokers. What do business insurance brokers do and is using them a good idea?

The answer to this question depends on the size of your business. If your business is very small and consists of you and some family members, with no other employees, your insurance needs will be very basic. Using an insurance agent will probably make more sense for you. An insurance agent is employed by a business insurance company and can make sure that your needs are met because there won’t be much to your policies. A broker works independently and takes a bigger commission than an agent does. They are better suited to business owners who have many employees, therefore many more insurance needs.

Brokers can help to negotiate the best rates on a variety of different business insurance policies. Also, they are very good at keeping your insurance needs updated as your company grows or changes. They do take a higher commission rate than agents do but if your business insurance needs are extensive; they are worth the extra cost and can end up saving your company a lot of money in the long run.

If you are still unsure about whether to use a broker or an agent, there is nothing wrong with getting quotes from each and choosing the policies that are best presented to you.

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