Why Insurance Agent Relationships Are So Valuable

Individuals and businesses have the option of building a relationship with an insurance agent, rather than working directly with an insurance company. In many situations, this is a valuable move that can help you plan more effectively, score impressive discounts, and manage claims easier.

But how exactly does this relationship manifest? And how can you use it to your advantage?

Insurance Agent Relationships: The Basics

Building a relationship with an insurance agent is a way of establishing a kind of mediator between you (or your business) and your insurance company. Your insurance agent will likely have access to many different insurance carriers; once they understand you and your needs, they can recommend a specific carrier and a specific insurance policy that suits those needs.

Throughout the course of your relationship with an insurance agent, they can help you establish and modify your insurance policies, switch carriers when necessary, and even manage your claims. Think of your insurance agent as an assistant and an advisor whose job is to help you navigate the complex world of insurance.

In the construction industry, this is especially important. As a general contractor or construction industry employer, you’re responsible for maintaining adequate insurance coverage and preventing workplace accidents whenever possible. Your insurance agent can help you find the best coverage for the lowest price, avoid potential legal trouble, and manage your claims efficiently.

The Benefits of Having an Insurance Agent

These are some of the most important benefits of having an insurance agent:

• Knowledge and specialization. Insurance agents are insurance industry professionals who are intimately familiar with the details of how insurance policies work. Even if you’re familiar with the basics of insurance and the most commonly used terms in the industry, an insurance agent will likely be able to teach you new things. This is even more valuable if you work with an insurance agent who has a field of specialty relevant to you or your business; for example, you can choose to work with an insurance agent who has in-depth knowledge of the construction industry and access to construction insurance carriers.
• Direction and guidance. These professionals are there to provide you with direction and guidance. If you’re not sure what your legal responsibilities are, if you have questions about a specific policy, or if you’re looking to make a change in the near future, they can help you better understand your situation and make recommendations so that you end up in the best possible position long-term.
• Access to multiple carriers. Insurance agents usually have access to multiple insurance carriers. Rather than doing all the research on your own and trying to decide between two companies that appear mostly identical, your agent can make dynamic recommendations for which carrier and policy you choose. If a carrier stops being a viable option for any reason, they can help you switch.
• Claim management. Even better, insurance agents can help you through one of the most stressful elements of insurance: managing a claim. They can help you understand the claims process, walk you through the steps, and even provide you with updates as your claim is processed.
• Legal direction. In some cases, your insurance agent can even help you understand the law as it applies to your insurance coverage and claims. This is especially valuable if you’re an employer dealing with the fallout of a workplace accident.
• Cost savings. Most of the time, you can save money by working with an insurance agent. They’ll do most of the work up front for you, helping you compare different policies so you can get the best coverage for the lowest price.

How to Improve Your Relationship With Your Insurance Agent

So how do you build a better relationship with your insurance agent?

• Choose the right specialist. Start by choosing the right insurance agent for your needs. Ideally, you’ll work with someone who has specialization in your field.
• Get to know your agent. Get to know your agent. Understand what their strengths and weaknesses are. Become familiar with their way of doing business, and learn to trust their recommendations.
• Ask lots of questions. Working with an agent is a learning experience. Make sure you ask lots of questions so you can walk away with a better understanding of how your policies work.
• Show your gratitude and support. Take the time to show your gratitude and support; even a simple “thank you” email can help strengthen your relationship with this agent.

Whether you’re a construction industry employer, an individual looking for car insurance, or something in between, finding the right insurance agent can be massively beneficial. Do your due diligence, choose your agent carefully, and strive to build a better relationship with that agent however you can.