Insurance brokers are professionals that link people and businesses with insurance companies. Typically, they guide their clients through the insurance application process to ensure they get the best insurance cover at reasonable rates. If you have not engaged the services of an insurance broker in the past, the extract below contains five questions that you should ask your insurance broker. With luck, they will help you choose an insurance broker and increase your understanding of the insurance application process. 

1. What Is Your Specialisation? 

Insurance brokers have varying specialisations. For example, some will specialise in car insurance brokerage while others deal with business insurance. The advantage of dealing with a specialised agent is that they understand the risks you are exposed to, current insurance trends and industry regulations. As such, they can offer valuable advice as you take your insurance cover. 

2. Are You Independent Or Affiliated? 

An insurance broker could either be affiliated to a specific company or independent, meaning that they work with all insurance companies. Although an affiliated broker can only connect you to one company, they will offer the best deals that the insurer has to offer. The benefit of an independent agent is that they will help you compare the terms of the various insurers. 

3. What Are Your Rates?

Insurance agents have varying rates. For instance, some will charge piecework (per hour), others will have a fixed charge, while some will charge a small percentage of your total cover. The insurance agent's pricing should match their negotiation skills. As such, it would be worthwhile to pay top dollar if the agent can guarantee low premiums and reasonable terms from the best insurer. 

4. What Insurance Cover Will You Apply?

Although you may have a specific cover in mind, the agent will assess your personal or financial situation and advice the cover that suits you best. For instance, a business person could want public liability coverage. However, on closer assessment, the agent will realise that the business could also require fire insurance, product or professional liability insurance. In this case, the agent will negotiate with the insurance company to create an insurance package where the client pays a single premium for several insurance covers. 

5. Is It Possible To Reduce Annual Premiums? 

Insurance premiums are based on the risks that your business is exposed to. The agent can assess your business and advice how to reduce your annual premiums. For instance, you could reduce workers' compensation and public liability insurance by reducing workplace hazards, installing danger signs and issuing protective clothing to people visiting your business premises. 

When interviewing your insurance broker, assess their specialisation, affiliations, rates, the cover you require and how you can reduce the premiums.