Insurance isn’t a simple cut-and dried-business. Unless you have a deep understanding of what goes on in the industry, you are definitely better off consulting a professional to get insurance in the Sunshine Coast. Writer Gregory Boop discusses the fundamental differences between insurance brokers and insurance agents in his article for About Money:
Basically, insurance agents serve as middlemen between insurance companies and clients, and are responsible for processing the paperwork on behalf of the insurer.
Insurance agents are insurance professionals that serve as an intermediary between the insurance company and the insured. As a broad statement of law, an agent’s liability to their customers is administrative. That is, agents are only responsible for the timely and accurate processing of forms, premiums, and paperwork. Agents have no duty to conduct a thorough examination of your business or to make sure you have appropriate coverage. Rather, it is your obligation to make sure you have purchased needed coverage.
Captive vs. Independent
When an agent works for one company and sells that company’s services, he is a captive insurance agent. On the other hand, an independent agent offers the products from different insurers for comparison to find the best package for the client.
In a nutshell, brokers are like insurance agents, but with more education and experience since they (brokers and their authorised representatives) need to be licenced. The other difference is that insurance brokers tend to establish a close relationship with the client in order to know the extent of the coverage needed.
Expertise and experience make the difference
The best small business insurance brokers know the ins and outs of the industry, as well as the nooks and crannies of your establishment. In addition, if you have any claims to make in the future, your broker can facilitate those for you.
General insurance in Australia offers many options, and it can be quite difficult to select the right one for you. Brokerage firms like Insuring theProduct take pride in their work and commit themselves to servicing their clients. Not only can they answer client queries about insurance in general, they are able compare the coverage quotes from different providers and help you understand and decide on the best one.
(Article excerpt and image from “Insurance Agents vs. Insurance Brokers?”, About Money)