Choosing business insurance is like choosing a babysitter.
When you pay somebody else to step in and take care of something that you treasure, you want to be sure they are the right fit for the job.
Imagine a childcare agent that knows every babysitter in town and has spent years hearing feedback from parents. They can match you up with the exact sitter who fits your parenting style, your level of caution, and who works with kids just like yours already. They can even offer advice and tell you what to expect from your kids in the years to come.
You can find the least expensive babysitter entirely on your own, but the childcare agent is going to find you the right person..
This is the expertise that an insurance agent has about the coverage on the market.The Expertise of an Agent
While you are the expert on your business, an agent is an expert on the insurance market. And an excellent agent will be familiar your industry and the type of claims you may deal with.
An insurance broker acts as a middleman between your business and the insurance companies. They know the full spectrum of coverage on the market. They take your business’s unique needs into consideration and then suggest solutions. Agents offer you the opportunity for a custom-fit.
Even after choose the right insurance, an agent still provides vital knowledge that will make your business run smoothly.
Instead of reading lengthy technical wording, your agent can explain your policy in simple language. If an incident happens on business property, your agent can answer your questions about what to do.
This kind of service is hard to beat.
According to a 2017 study by J.D. Power, small businesses across the US with 11-50 employees are satisfied with their insurance coverage while those with less than 10 are seeing a sharp decline in insurance satisfaction.
Another study notes a drop-off of local agent usage among tech-savvy millennials who like to get their insurance using direct, online options. A mere 24% of this demographic uses an insurance agent to choose the best coverage.
Though the start-up generation has a soft spot for DIY, the tactic doesn’t appear to work on insurance.Geographic Considerations
There are other considerations besides saving a couple of bucks by avoiding agent fees.
A local insurance broker has agents who live and work in the same geographic area as your business. These agents are well-versed on insurance-related issues that are specific to you.
Local agents know your state’s employment laws and local environmental factors. For example, your agent knows if your business is located in a flood-risk zone and what level of insurance your business is required to have in case of a disaster. Agents will also be aware of the changes in your state laws, and can ensure you have the business coverage that’s right for you. For instance, a court case in San Diego, California, recently decided how long employee disability can be awarded. Your agent will keep up with the latest legal activity so that you are free to focus on running your business.
Some will even be familiar with laws concerning your industry, and how your business operates. This is where the agent provides the most value to your company.
Being able to speak in-person to an agent licensed in your state about coverage is smart. Having a local agent to turn to in case of disaster is invaluable.Employee Coverage
Insurance isn’t just about keeping your business safe. It’s also about taking care of your employees.
Small business owners don’t always have a human resources department to handle employee inquiries. When you offer group health and life insurance to employees, who can answer questions and explain policy issues to your staff?
As the expert on all your policies, your agent will field all the technical questions.
Even the head honchos appreciate what an agent brings to the table. Your agent can chat with your board of directors and partners so they understand how employee claims are dealt with in your state and what coverage is typical for your industry.
The agent will put your mind at ease and make sure you are taking care of your staff.Insurance Is an Agent’s Job, Not Yours
Let’s face it: Insurance can be confusing. There is no need to take on that confusion by yourself when an agent is available to help you. It’s quite literally what they get paid to do.
Regardless of your business, the smart way to choose insurance is to work with an agent.
Get yourself somebody who can ensure your compliance with local laws and get you the individualized coverage that you need. Get somebody who picks up the phone when you call with questions. Get somebody who will be there for you and your employees throughout the life of your business.
If you want to get it right, get yourself an insurance agent.
To speak to an insurance agent about insurance options in the Central Valley, contact us at LCK Insurance.