Insurance is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.
An entity which provides insurance is known as an insurer, insurance company, or insurance carrier. A person or entity who buys insurance is known as an insured or policyholder. The insurance transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms, and must involve something in which the insured has an insurable interest established by ownership, possession, or preexisting relationship.
The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated. The amount of money charged by the insurer to the insured for the coverage set forth in the insurance policy is called the premium. If the insured experiences a loss which is potentially covered by the insurance policy, the insured submits a claim to the insurer for processing by a claims adjuster.
Unlike other insurance providers, an insurance broker works for you rather than an insurance company. Brokers use their professional knowledge and experience to help you properly assess your insurance needs, shop for the best value in insurance coverage and help you in the event of a claim.
Many brokers will help you with a quote on line or over the phone, but personal consultations are encouraged, to answer any questions you may have, ensure there are no misunderstandings and no detail is overlooked.
Their services include:
Assessing your individual needs and obtaining quotes. Depending on the property, vehicle or business being insured, this might include performing an insurance valuation, taking photographs or obtaining an inspection report.
Comparing the coverage of different insurers to get you the best rates and conditions in an unbiased manner and making recommendations.
Searching for opportunities to reduce overall premiums by combining different types of insurance for discounts.
Explaining premiums, terms, conditions and any small print that you don’t understand.
Providing administrative follow-up, such as mortgage changes, certificates of insurance.
Providing advice and revisions at policy renewal or mid-term if material changes are necessary, such as a move or the sale of an asset.
Being available to answer questions after purchase. The vast majority of brokerages are well established in their community and insurance is their primary business.
Ensuring claims are fairly handled. They help you with the process and ensure a fair and speedy settlement. Brokers make a positive difference to an insurer’s payout in a substantial number of claims.
There is no extra cost to you for all the services that a broker provides. A broker is paid a commission through the insurance company that you place your business with, and believes in complete transparency in this regard.
