How to Find the Right Insurance Broker for Your Hotel Company
By Richard Dahm Senior Risk Consultant, National Hospitality Division, Wells Fargo Insurance Services | February 15, 2010
Purchasing business insurance in today's economy has grown to be a large ticket item on businesses' increasing budgets and diminishing bottom lines. As complicated as insurance coverage can be, the process of choosing a broker can make it even more difficult. With insurance rates drastically fluctuating, more businesses are reviewing their current policies and weighing all options - including whether to keep their current broker or look elsewhere. It is very easy for businesses to get lost in terminology and price comparisons when choosing a broker. Consequently, many end up questioning the value of their coverage for their premium dollar. In years past, package policies and mainstream markets provided more comprehensive coverage. Unfortunately this practice seems to be losing ground towards a much more line itemed cost. In essence, even if we are seeing reductions in cost the reality is that we are spending much more for diluted coverage.
Getting your money's worth does not stop with the insurance companies, but rather with whom you put your trust in, the broker. If you have any doubts, then your answer lies in changing your traditional review process and researching for the best broker available. The following are several essential guidelines to help you become a better informed buyer for selecting the right broker.
A Broker's Inexperience Can Cost You
Risks associated with specific trade needs are susceptible to magnification when businesses contract brokers not specializing in their particular industry. Clients are often surprised by the frequency with which they encounter errors and oversights in coverage made by inexperienced generalists. Such oversights often include written policies with inadequate or disproportionately higher limits, insufficient marketing to carriers, lacking in essential coverage and/or strategy, and coverage modification by the carrier that is overlooked by the broker.
Take Your Broker to Task
Your insurance broker should act as an intermediary between you and your insurance companies. Brokers use their in-depth knowledge of risks and the insurance market to find and arrange suitable insurance policies. Unlike insurance company agents, brokers are independent and can offer products from more than one insurer. This will help to insure that you get the best possible deal available.