The All-Risks Advantage

Insurance may not be the sexiest service or even one that inspires discussions in social gatherings.  However, it is -like it or not- a necessary and important protection that we all engage with at some point, whether it is to protect our greatest assets; homes, cars, investments or our loved ones.   The application has many opportunities, so understanding that these investments are important to us and we want to be certain we have protected them as best as possible, but we also want to ensure we are not overpaying either!

When it comes to insurance there is a wide range of possibilities, options, and considerations.   It’s like sitting down at a highly recommended restaurant and receiving a menu that reads like an encyclopedia.  You know the food is going to be great because everyone raves about it, but how do you know what to choose?   All-Risks Insurance brokers are like your personalized concierge, who will help you understand how to navigate the ‘menu’ of options to find exactly what will satisfy your appetite.

To begin, it is important to understand (briefly) the difference between the three options of who you can purchase your insurance from:  A Direct Seller, An Agent and an Independent Broker.

These are typically insurance providers who are authorized to sell their services directly to the consumer; a bank for instance.   The agents are employees of the company who determine/set their own pricing, decide who they will or will not insure, and most importantly if there are any claims they also will determine how much they will pay out on the claim.  Typically, people believe that dealing with the Direct Seller will ensure they are getting the best possible deal.   On the most part, they wouldn’t be wrong, however, you must remember that a Direct Seller is promoting one product/service (theirs), therefore is likely limited to what they can actually offer.  Sometimes, you may find yourself being a square peg getting pushed through a round hole!

Graphic Demonstrating Direct Seller

Agents are the first step toward dealing with a ‘middleman’ who has established a level of authority or confidence with a direct seller and therefore has been awarded the opportunity to produce policies for the products/services that are offered by a direct seller.   This model most closely resembles the ‘middleman’ model whereas the customer (you) cannot purchase directly from the insurance provider and you must use an agent to access their products/services.   There will be a premium added as that is simple business… if they are not making money on providing this service to you, then how can we expect them to maintain their business and provide you with service?   Keeping in mind, most agents are also representatives of an insurer, therefore, available options may be limited and you may find yourself still feeling like a square peg being stuffed through a round hole.

Graphic Demonstrating Insurance Agents

Now we look at the Insurance Brokers.   If you want to ensure you are getting the best value and the insurance solution that is right for YOU, not the masses than this is where brokers can offer the greatest value.   A broker will offer the greatest variety of insurance options.   They work with a multitude of direct sellers who are all wanting to attract the large volume of customers who the broker (brokerage) manages.  Therefore, they have spending power!   In addition, a broker is unbiased to which provider they work with.  They understand the variety of offerings, and will tailor fit YOUR needs with the right carrier(s) and will determine which carrier is offering the greatest value for you spend.  In addition, a broker is there to help YOU right the right policy that best protects and serves your needs.   Brokers are interested in understanding what is important to you and care less about what is important to the carrier.   In the event of a claim, your broker will also protect and fight for you to help you recover as much of your damages as possible, defend you against rate increases and guide you through the plethora of insurance details -prior to signing a policy or during a claim situation.   A broker derives their value from serving their customers (you), not from writing policies.

Graphic Demonstrating Insurance Brokers