Buying business insurance is a complex process. There’s no one-size-fits-all policy, so business owners must select what types of coverage their company needs.
Most business owners seek the help of an insurance agent when making this decision. This is generally a good idea. However, you may not realize that the type of agent you work with makes a big difference.
When you choose an independent agent, you’ll gain access to far more options than you would otherwise. Here’s a closer look.
What Is an Independent Insurance Agent?
Insurance agents fall into two broad categories: captive agents and independent agents. Captive agents exclusively represent one insurance carrier. While a captive agent can still offer helpful insurance advice, their ultimate goal is to sell you one of their employer’s policies.
On the other hand, independent agents are not employed by insurance companies. Instead, they offer insurance products from multiple carriers and help their clients select the options that best fit their needs.
How an Independent Insurance Agent Can Offer You More Options
Personalized coverage is important when you’re buying business insurance. An independent agent can expand your options for coverage in the following ways.
They Work With Multiple Insurance Carriers
When your insurance agent can connect you with policies from many different carriers, you have access to infinitely more options than you would with a captive agent.
This feature is especially important if your business needs uncommon or niche insurance coverage. For example, if your business uses drones, you may need drone and aviation insurance.
If you work with a captive agent whose employer doesn’t offer the niche coverage you need, you’ll likely have to find it yourself. An independent agent may be able to tap their network to see if they can find you the coverage you need for a fair price.
They Leverage Their Understanding of Local Risks
Independent insurance agents are members of your local community. In most cases, they have a strong working knowledge of the location-specific risks that may impact businesses in your sector.
Most independent agents prefer to be proactive rather than reactive, so your agent will likely identify potential risks and suggest several types of appropriate coverage.
They Make Custom Policies a Priority
When you speak to a captive insurance agent with a major insurance carrier, the agent is likely to try to sell you an existing policy. Captive agents may sometimes help you customize your policy to some extent. But when you work with an independent agent, building a customized insurance policy is a matter of course.
With some kinds of insurance (like car insurance), having a fully customized policy may not always be necessary. However, because every business faces different risks, it’s important to take the time to tailor your policy to your individual needs.
Whether you’re buying business insurance for the first time or you’re looking for a reputable agent to help you update your policy, working with an independent agent is one of the best things you can do for your company.
Discover the Difference an Independent Insurance Agent Can Make
Putting together a fully customized insurance plan can be difficult, but when you have access to more options, you’ll be far more likely to end up with a policy that’s a perfect fit.
If you’re ready to learn firsthand how an independent agent can be an asset, Hulett Insurance is here for you. Call us or get in touch online to get started!
