What to Look For in an Insurance Provider

When choosing an insurance provider, it's important to distinguish between the insurance company itself and the insurance agents. These are two different processes, and there are different questions

Insurance agents

Insurance agents are essentially commissioned salespeople who work for specific insurers. As a result, they may not always offer the most competitive policies. Critics of agents believe that they cannot be objective about insurance products. Others insist that the only way to find your way through the myriad of insurance options is with the help of a good agent. Just keep in mind that some are more helpful than others.

Here are some questions to ask when interviewing an agent:

• How long have you been in business?
• How are you compensated?
• Which insurance companies do you work with?
• What insurance carrier do you do the most business with?
• How much clout do you have to resolve a tough claim or coverage dispute?
• Which insurers specialize in covering my type of business?
• Do you have errors and omissions coverage? (Otherwise, you may have no recourse if an agent makes a mistake.)
• What are the industry segments you serve?
• Who are your top clients?