Problems With Using Commercial Insurance Brokers In Massachusetts

 Insurance brokers are companies that will survey other insurance companies in order to get their clients an array of possible insurance plans to choose from. There are many reasons that a person would want to go with an insurance broker rather than trying to find insurance by themselves. Among those reasons the fact that most companies will be able to find you better deals than you could on your own. They will also accept the negative consequences that come with contacting some of these companies. Some of those could be persistent emails or phone calls about the subject trying to sell you further insurance.

With all of that being said, there are some very real downsides to operating under an insurance broker instead of finding your own agent.

Potential Problems

Here are a few of the possible problems that could arise when choosing to work with commercial insurance brokers instead of finding your insurance company on your own:

• Cost – The cost is going to be higher when you use a commercial insurance broker. This is particularly true if they have to do extra work because of special requirements of your business.

• Bias – Some brokers can be biased toward a particular company. If this is the case then you are running the risk that they are both charging you a fee and not getting you the best information that they can for your business insurance.

• Uncertified – The certification process is different for insurance agents and insurance brokers. When you go through a broker you are running a slight risk that they may not be able to perform the duties as they are meant to.

• Negligence – When you rely on someone else to do the work for you with regard to insurance, you have to keep in mind that they could potentially fill out the paperwork wrong or choose the incorrect type of insurance. If this happens then you could be left without proper insurance when the time comes. This means that it is entirely possible that you will spend all of the money required on your insurance and then get nothing out of it when you actually need it. This does not happen all the time but it is a big enough concern to mention.

• Red tape – When it comes to getting insurance, nobody likes red tape. If you opt to go with a broker instead of going with a regular insurance agent then you have one additional step that you have to go through in order to find anything out about your insurance. This also means that you will not have a familiar face at your insurance agency if you have to contact them for any reason. All of this can add a bit to the confusion of the process of actually utilizing your insurance when the time comes.

To find out your options in Massachusetts, you may look at the website listed below:

Commercial Insurance Brokers Mass

These are just a few of the pitfalls that could potentially come from the use of an insurance broker for your business. It is important that you do everything that you can to make sure the person or company that you choose to work with is as legitimate as possible.

Article Source: http://www.streetarticles.com/commercial/problems-with-using-commercial-insurance-brokers-in-massachusetts

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