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The #1 Mistake in Selecting an Insurance Broker

Updated: Feb 21


The business world has gone through significant disruptions over the last few years,

forcing smart owners to proactively seek ways to protect their businesses. The

challenge, however, is the multitude of products and coverages available. Wading

through it all can be a daunting task. 



Speaking with an experienced broker can help you make the right choices and provide

peace of mind. But having the proper knowledge and mindset is critical.


The number one mistake we see when people select a broker is this; They base their

decision on the policy details and price - and not on the broker.


Most insurance buyers are unaware these should be two different, independent

decisions. 


So, how should you approach this decision? First, interview and select your broker. Then, choose the carrier that best matches your need for coverage and price. 


Most decision-makers do it backward - selecting the policy with the lowest price first. In

doing so, the broker is selected due solely to their association with the proposal.


This leads to several issues:

  1. First, this places a burden on the business owner to be an insurance expert and to understand the policy language.  

  2. When you prioritize selecting the policy first, you limit your options in finding the best partner to design a creative solution and provide exceptional service.

  3. Due to incomplete submissions and information, or a vague understanding of the risk to maximize credits, this backward approach also results in you receiving the best AVAILABLE price instead of the best POSSIBLE price.


By prioritizing your selection of the right broker (first), you can be confident that the

policies you evaluate (second) will offer the best protection and the peace of mind you

deserve.


 

Jacob Haralson

VP, Oil & Gas Team Lead, Chairman of the Board

601-944-0961



Jacob Haralson is Vice President and Shareholder at Ross & Yerger and is the Oil & Gas Team Lead. Haralson specializes in Oil & Gas Services & Food Processing.

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