The vast majority of successful business owners enjoy that status by working hard and making smart decisions. One of the best decisions any company can make is finding experienced, qualified people for key positions. One position that can greatly impact any business investment’s chance of success is its insurance agent. Do you want an agent who works for your business, or the insurance company?
To protect your investment and future, purchasing from a quality business insurance company is imperative for the long-term success of your business. As a business owner, however, it can be difficult to know what actually constitutes a “quality” company, given the variety of options available to you. This article will serve as a primer to help guide you in the right direction.
Captive Versus Independent
There are two primary types of insurance agents who will handle your business insurance needs. Understanding the differences between the two will help you determine which one is best suited for your business and your needs. Captive Agents A captive agent is someone who represents a single insurance company. Part of a captive agent’s agreement is that only one company’s coverage, services and products are offered to clients and potential clients. Independent Agents Independent agents, such as those on the Trusted Choice® network, can offer coverage from a variety of different providers. In most cases, independent agents can provide clients with more options, as well as cost savings, given the variety of insurance providers they represent. Independent agents are able to shop around to ensure you get the best possible blend of coverage coupled with rates. You are most likely busy operating your business. Instead of spending endless hours finding quotes from insurance companies, you can let an independent agent take care of this for you. In addition, an experienced independent agent can provide you with guidance as it relates to your particular business insurance needs. There are many situations when combining various types of insurance policies can save your business substantial amounts of money. As no two businesses face exactly the same risks, knowledgeable independent insurance agents can help identify your unique liabilities and insurance needs.Independent Insurance Agencies Meeting Your Business Insurance Needs
A recent study of The South Group, an independent insurance company in Mississippi, shows that 70 percent of their current clients are business owners. This is a significant increase for the company, which mostly dealt with personal insurance policies in the past. In fact, some independent insurance agencies, such as Trusted Choice, are devoted to retaining knowledgeable agents who have carved out an expertise in certain industries, such as the agriculture business, jewelers, and anything in between. These agents can give clients niche-specific service to ensure they receive the coverage and protection they need.Advantages of Using Independent Insurance Agents for Your Business Insurance Needs
Savvy business owners are turning to independent insurance agents for their business insurance needs because they:- Offer a Larger Selection
- Are More Affordable
- Offer Unbiased Advice
- Can Assist with Claims
Captive Agent Disadvantages for Business Insurance Policies
If you make the decision to work with a captive agent, you may run into a number of problems that are difficult, if not impossible, to overcome, including the inability to:- Purchase an insurance product because the parent company does not offer it
- Take advantage of competitive prices due to a limited number of options