An insurance broker is an expert who helps both companies and individuals to choose the most suitable insurance for themselves, their company, home or family. A broker is, therefore, an advisor who acts on your behalf and helps you find and choose the right policies for yourself. The expertise and experience of a broker are focused on types of insurance, as well as on risk management. Without a licensed broker, trained in making a high-quality and transparent analysis of coverage and risk, it is almost impossible to contract an adequate insurance policy with all the necessary coverage and, at the same time, run a transparent business.
A licenced insurance broker works for the client and protects the client's interests. In his business, a good broker maintains a partner relationship with insurance companies, which is why he is the optimal channel for negotiating insurance policies when it comes to transparency, coverage and premium amount.
Many brokers focus on a niche area and work only with one type of insurance or within one industry. Others, however, offer advice on several types of insurance.
An insurance broker:
- understands the risks and ways to handle them
- listens to and understands your insurance requirements
- researches the insurance market and finds the policy that best suits your requirements
- advises objectively and impartially on the coverage that best suits your needs and budget
- helps you understand the selected policies
- explains coverage and exclusions honestly and clearly
- clearly states all the costs of your policy, without hidden fees
- provides clear information and documentation
- helps you prepare the claim, and then ensures fast, fair and efficient service with the insurer
An insurance contract is a contract between the insured and the insurance company with an agreed fee (premium). Based on this contract, the insurance company undertakes to pay an agreed financial amount to the insured or to a third party, in accordance with the principles of reciprocity and solidarity.
An insurance broker is obliged to protect the interests of the insured.
The insurance broker is therefore obliged to:
- analyse risks and appropriate coverage principles
- explain in writing his proposal of insurer, and inform the insurer of the amount of the commission specified for the conclusion of the insurance contract
- mediate the conclusion of the contract on behalf of the client (the insured)
- inform the insurance company of the request for an offer from the insured, in order to conclude an insurance contract
- hand over the policy and other documents related to the contract to the insured
- check the contents of the insurance policy
- offer assistance to the policyholder for the duration of the contract, both before and after an insured event
- make sure that the insured undertakes all legal actions that are a prerequisite for the preservation or realization of the rights prescribed in the insurance contract, and within the appropriate time limit
- constantly verify the insurance contracts concluded by the policyholder
- prepare proposals for amending the insurance contract
Brokers, i.e. insurance intermediaries, earn their income from the commission they receive from the insurance company whose offer has been selected as the most suitable for you.
The insurance broker bases his recommendation exclusively on determining which coverage works best for you. Although the insurance broker works for you, you do not pay him directly. Brokers are issued licenses from the states in which they work, and that state license stipulates that they are obliged to represent your best interests.
Also, the long-term business of the broker relies on regular customers, which further motivates brokers to provide you with the best possible coverage, and keep you satisfied with your selected insurance.