You might be thinking that you need to change insurance employee benefits brokers for a number of reasons—you’re concerned with the quality of service, you realize you’re not getting the best value, you met a broker or brokerage firm you trust more, you don’t like your current broker, and so on. Even if you’re considering it, however, you might avoid it because you think it’s too difficult. The reality is that if you think you need to change brokers, there is reason to consider it. And, if you do decide it is in your best interest to do so, changing brokers isn’t as difficult as you think.
Insurance Broker Considerations
Securing the right level and type of insurance takes time and resources. Each employer has a unique set of risks and employee population, so there is no such thing as a “one-size-fits-all” policy, regardless of the type of policy you’re considering.
If you’re considering switching insurance brokers, it’s good to start with a checklist of what you want in a broker. Not all insurance brokers are the same, so you want to ensure you’re working with an insurance broker or firm you feel comfortable with.
To identify the right broker for you, consider the following tips:
Research and Ask for References and Referrals. References and referrals offer information about the quality of service you’ll receive, as well as insights into the type of service provided. Google and Yelp are good places to start for online reviews. You can also ask brokers for references from individuals and businesses with similar needs to yours. Ask family and friends for referrals to support your search.
Seek Accessibility to All of the Coverage Types and Levels That You Need. It’s best to go with an insurance broker that can cover all of your employee benefits needs. That way, you’ll save time and effort going back and forth between brokers and minimize the risk of purchasing unnecessary insurance.
Look for Specialized Expertise, Qualifications, and Associations. Insurance brokers must be licensed by the states in which they offer services, so you must work with an up-to-date and current broker on licensure requirements. For employee benefits brokers, you also want to ensure they have the qualifications and training in that specific area to best support you and your business.
Consider Overall Fit and Cost. Cost is an obvious consideration for businesses to ensure they remain profitable, and you want to work with a broker that offers options that fit your budget. However, overall fit is just as important, if not more so, as cost when deciding on an insurance broker. Are you comfortable with and trust them? Do they offer the insurance you need? Do you feel you can create a long-term working relationship with them? Are they easy to work with and accessible?
Seek Personalized Guidance. Each business is unique and has specific needs and requirements regarding employee benefits. As a result, a reputable insurance broker will take the time to understand your needs and offer options for your specific scenario.
Consider Long-term Relationship Support. You’ll likely need to update and revise current policies and add new policies in the future as your business needs evolve. You want to work with a broker you feel you can forge a long-term partnership with as a result. Doing so means you won’t have to familiarize yourself with a new broker every time you need to make a change in the future, saving you time and resources.
Appreciate that Employee Benefits is a Specialized Niche. Consideration for employee benefits platforms is highly specialized. If you need employee benefits options for your workforce, look for a broker specializing in all types of employee benefits insurance, including health, disability, life, and worker’s compensation insurance. In addition, laws frequently change when it comes to employee benefit requirements, so a specialized insurance broker can ensure you remain compliant.
Consider Transparency Regarding Fees. Insurance brokers should be upfront and transparent about the fees and commissions they charge. Be wary if you aren’t offered full disclosure on the terms of payment and fees.
Seek Stability. Once you have a shortlist of employee benefit insurance broker considerations, ask to see their financials, while also conducting your own research on the firm’s history. It’s critical to work with a stable company that won’t go bankrupt after you choose to work with them.
How to Change Your Benefits Broker
The following are common myths when it comes to changing benefits brokers:
- Switching brokers is complicated
- If I change brokers, I’ll have to change my insurance carriers or benefit plans
- I have to wait for the right time of year to switch employee benefit brokers
However, these myths are not accurate. If you want to switch brokers:
- Complete a Broker of Record (BOR) form. The broker you would like to transition to can help you with this step.
- Once you submit a BOR, you do NOT need to change your benefits or carriers. The BOR simply removes your current broker from your account and provides the new broker of record the ability to represent your organization and manage your employee benefit programs.
- You can switch your broker at any time without it impacting your current carriers or benefits. You don’t need to wait for the beginning of your plan year or renewal period.
The one exception to switching brokers is if you are working with a Professional Employer Organization (PEO). If you are working with a PEO, then the process to change broker will require more than a BOR form. Your PEO manages more than just your benefits—they are typically responsible for payroll, business taxes, and other services defined without your agreement.
You will need to take action to leave your PEO if you want to switch employee benefits brokers, though if you do leave your PEO, you also retain responsibility for the other services, like payroll and business taxes, that your PEO previously managed. A knowledgeable employee benefits broker can support you in navigating the process of leaving a PEO to help you determine if it makes sense to do so, including the appropriate timing and considerations.
KBI Offers Full-Service Employee Benefit Platform Support
The insurance world might feel complex and overwhelming. Fortunately, if you’re working with the right insurance broker, it need not be. Working with the right insurance broker can be a considerable stress-reducer that also provides peace of mind to you and the business. Therefore, it’s essential to be with an employee benefits broker you trust and feel comfortable with. Otherwise, you risk missing out on savings opportunities and the best options for your business that a positive relationship can bring.
At KBI, we’ve had the privilege of working with businesses of all types and sizes to build trust and forge long-term relationships to support employee benefit implementation through the years. We specialize in a variety of insurance types and coverage levels and do our best to take the pain out of the decision process, so you can focus on taking care of the business. We would love the opportunity to get to know you to develop an employee benefits strategy and plan for your short and long-term requirements.
By Chris Freitas
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