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Remember, a broker’s compensation is typically less than 10 percent of your total premiums. Putting brokers out to bid to save 10 percent on the broker’s fee translates to a 1 percent savings to you, the client. A good broker can negotiate better savings from the other 90 percent of the annual premium cost. Getting a 10 percent savings on the other 90 percent can translate into a 9 percent savings to you because you chose the right broker.
Long-term market relationships and a proven track record of success in your industry are major factors driving the cost efficiency of your insurance program. It is the broker’s responsibility to enhance your relationships and offer you creative solutions. That’s the best answer of all.
Michael Landucci is assistant vice president of Allied North American Brokerage of California LLC.
George Luther is an account executive of Allied North America Brokerage of California LLC.
With one broker, your business may
benefit from:
- Better insurance pricing — With one broker ultimately
driving the process and pricing, underwriters
will typically give them their best efforts.
- Less underwriter confusion — Since they will not
be fielding calls from multiple brokers.
- More personal service — More time can be spent
with your broker and company to arrange the
best program for you; you’ll only have one renewal
meeting, too.
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