NNews December 2023

36 December 2023 I f you were ever tasked withmarketing your insurance program, you may have wondered what to look for when comparing insurance brokers. Not all insurance brokers are created equally. Here are some things you should probably know about insurance brokers. Insurance brokers are not the same as insurance agents. Both an insurance agent and insurance broker provide insurance coverage to their clients. However, an agent represents a single insurance carrier, while a broker has access to multiple insurance carriers, which helps to secure the best insurance program. Good brokers almost always specialize in niche markets. Specialization allows brokers to gain a better understanding of an industry and the challenges that industry faces. They are better prepared to assist clients in identifying the unique issues they face and to provide relevant and practical solutions. By Lisa A. Bellis,MBA, CSM, ARM, CPG, AIS, CIC, CRIS, Senior Vice President, RiskManagement & Loss Control Services, Brown &Brown of Lehigh Valley Things You Should Probably Know About Insurance Brokers Not all brokers are able to handle clients outside of their states. Insurance brokers must be licensed in the states in which they sell insurance. Since there is no single multi-state license available, in order to sell outside of a resident state, a broker must apply for a non-resident license. Remember, just because a broker is licensed inmultiple states does not always mean they are knowledgeable about the laws and regulations of those states. Look for a broker with offices in several states. Bigger is sometimes better. Bigger brokerage firms have the benefit of leverage. That means their ability to negotiate better coverages, limits, and pricing is at an advantage over their smaller competitors. Larger firms also tend to have access to a broader array of markets, specialty markets and captive insurance programs.