Thursday, August 12, 2004

The Hole Truth- Choosing a Broker

"Garbage in, garbage out…quality in, quality out." The better the information provided by your broker to the underwriter, the more comprehensive the program will be upon quotation. An insurance company must be convinced that financially assuming your exposures to risk is a smart business decision.

You may find yourselves repeatedly asking participating brokers, "Why do they need that?" (Referring to why the insurance company wants to see your financial statement or your membership application.) The broker who bombards you with the most questions may well be the most qualified to negotiate effectively on your club’s behalf. For it is he or she who is proactively working to get the carrier to improve upon your existing coverage.

Beware of those who ask for very little data throughout the proposal process. With limited information they can deliver only a "generic quote." In today’s competitive marketplace you have access to far more than that. If willing to put the effort in, you can secure highly customized coverage.


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