Does One Insurance Agency Sell All Types of Insurance?
Most small agents and local brokers have one area of expertise, such as business insurance (property/auto/liability) or life and health (benefits). Some specialize in personal lines for individuals, while others sell business insurance. This also holds true for insurance companies.
If you need to purchase a variety of insurance types — e.g., health, property, liability, and disability — it's likely you'll end up with at least two insurance carriers to cover all your business needs. But you may need a third or even a fourth carrier for personal insurance.
Many agencies market themselves by designing business insurance programs for particular industry segments. These programs generally include property, liability, auto, and workers' compensation insurance.
Here are a few tips to follow when shopping for insurance:
- Industry associations. If there's an industry association for your business, find out if it offers insurance-purchasing programs. Some offer health insurance at a discount.
- State purchasing pools. Also check to see if your state offers insurance purchasing pools for small businesses. But be careful; some state insurance is for the assigned-risk pool (those who cannot obtain coverage otherwise).
- Referrals. Ask other business owners which agents or brokers they use for their business and life/health insurance.
- Interview agents. Make sure any agent or broker you're considering knows your business. A good broker will be able to structure a program that covers the specific business risks of your industry. Find out the current market for your insurance risk.
- If you plan to grow. Be sure to find an agent or broker who has the resources and expertise to grow with you. Ask who their other clients are, and get references.
