business insurance

Business insurance and efficiency of insurance broking companies

By June 17, 2019 No Comments
insurance

When it comes to business insurance, it is quite a common practice for business owners and companies to jump ship. A lot of businesses fail to understand the importance of building long term relationships with their insurers, insurance companies and insurance brokers. In business, most enterprises want to engage in and maintain long term client relationships and associations. Why not apply the same approach to the insurer-insured association?

In this blog, we discuss about the associations that insurance seekers and insurance companies have, the nuances, and how long-term relations can affect the efficiency of the entire practice.

From the perspective of the insured:

Why should good relations and rapport matter? With changing business needs, the role of the insurance broker has changed drastically. Today, insurance brokers’ role is not just providing an insurance policy but also value-added and more comprehensive risk management services.

  • Comprehensive and expert risk assessment of your business
  • Timely and regular risk assessment and insurance health evaluation
  • Education and training to your employees in reducing risks
  • Prompt response in times of claims
  • Guidance in reducing risks
  • Help in the correct calculation of insurance value

Your business can thrive in many other ways, and be catered to with a renewed sense of security if you provide your insurer with the freedom to build a great partnership.

Transparency and honesty help secure relations with the insurance broker or company.  Among the most important factors in building great relationships are trust and transparency. When it comes to communicating with the insurance broker, it is most important for the insurance seeker to be honest and open about sharing all the important information. This helps insurance brokers and companies to provide more efficient services. Limiting the information shared would only lead to further miscommunication and mismanagement, and affect your chances of getting a good insurance deal.

Asking questions and understanding every detail is a wise thing to do. Honesty works both ways. Those seeking insurance must take a proactive approach and ask questions to the insurance broker. As an insurance seeker, you must ask all questions related to your business risks and your broker should be happy to answer all your queries without any qualms. Asking questions helps clear the chances of any misunderstandings about the insurance policies that a business is purchasing.

For example, a commercial general liability insurance only covers third party claims. A number of business owners are under the impression that it would compensate for bodily injury to their employees as well, which is not the case.

Further, asking all questions in order to understand a business insurance product, demonstrates and establishes that you have a certain level of trust and comfort that you share with your broker, which allows them to give you some level of insight into their business.

The insurer and insured can have unified goals. Think about insurance as something that adds value to your business and not something that’s a one-time expense to be forgotten about. Being the one who is seeking insurance, it could help if you shared the company goals and future plans with the insurance broker. This would help the insurance broker assess your future insurance needs and plan your portfolio accordingly. It could even have cost benefits.

Trust is key in business. If you find a broker whom you or your organization trusts, it becomes easier to rely on them for certain things and situations. Their suggestions will be easier to believe, and you can follow their lead on risky issues. The best way to build a long-term relationship is to trust your insurance partner. When you are hiring somebody who is an expert in their field, and then second-guessing all their suggestions and manoeuvres, it becomes difficult for both parties involved.

From the perspective of the insurance company/broker

Psychologically, humans tend to incline towards the “known,” because they are already aware of what to expect. Most insurance advertisements are based on the basic idea of investing for the future risks that a business could face, and how one can trust the insurance company to make sure that your business’s future is secured.

The insurance industry is heavily dependent on its clientele, acquiring new clients or the loss of old ones affects the insurance company. For insurance broking companies, it is a must to invest time and effort in your customer service—build a relationship with your client instead of reducing the relationship to an apathetic professional one. Some of the best insurance companies, not only work on securing the future of the clients but also secure the bond they share with them.

Satisfaction prospers loyalty. Satisfied customers form the pillar of insurance broking companies. A happy customer becomes a loyal one. The engagement of the client with the company should not be on a superficial level, but strive to go beyond.

Easy on your pocket. Even in the aspects of cost, it is easier on the company’s pocket to retain their customers. A lot of resources are used to get new people on board, and for them to trust you. Additionally, old and trusted clients also serve as the best ambassadors of the company. Recommendations go a long way, and are a great way of free advertising and strengthening the reputation of the organization as well.

Word of mouth can do wonders! If insurance companies do not share a good rapport with their clients, it is more than likely that they will not recommend your insurance company to others. Insurance as a topic is too personal and a high-risk. But if the customer is satisfied, they will most likely boast about their insurance broking company’s services in their circle. It might be an old-school way of doing it, but people are still big believers in testimonials of people that they know personally.

How to evolve your relationship?

Let’s look at some ways and efforts that can help create a strong and long term insurer and insured relation:

  • Maintain open communication
  • Ask as many questions to clear doubts
  • Both parties must listen to each other’s suggestions and needs.
  • If the customer understands that you listen to them with keen interest, and provide them with the best service you can, then they will feel valued.
  • Insurance brokers and agents should be willing to guide their clients all the time.

Long term relationships and associations have a lot of benefits in business. PlanCover is a business insurance broking company specializing in small and mid-sized enterprises. With more than a decade of experience and a team of experts from different industries, PlanCover provides overall guidance and service for comprehensive business insurance plans. Get in touch to know about the different kinds of insurance that you could secure your business with.

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