Should I Use an Insurance Broker?

SHOULD I USE AN INSURANCE BROKER FOR HEALTH INSURANCE?

Buying health insurance is a crucial element of an individual or family’s financial well-being and sense of security. Out of pocket medical expenses can put a considerable dent into savings accounts or the monthly budget. Medical expenses can be costly, especially in cases of emergencies and chronic illnesses, and are a leading cause of bankruptcy filings in the United States.

Purchasing medical insurance helps to mitigate the financial risk and costs associated with healthcare expenses. Working with insurance brokers is beneficial, as they shop around to find the best pricing and plans to meet your healthcare needs. This is especially important if you are planning to purchase plans outside of the Affordable Care Act (ACA) Marketplace.

ACA Marketplace plans can be purchased through your state’s exchange website. ACA plans cover essential healthcare benefits, where non-ACA compliant plans are not required to cover these benefits.

An insurance broker can shop marketplace plans to help you compare them. A broker can also help you assess and review non-ACA plans to see if there is a better fit for you and your family’s needs.

SHOULD I USE AN INSURANCE BROKER FOR BUSINESS INSURANCE?

Without the right level of business insurance coverage, a single claim can negatively impact your business significantly. There are numerous types of business insurance one can purchase. By working with an insurance broker, they can help you assess your level of risk and the types of business insurance necessary to ensure your business is fully protected.

Different types of business insurance include:

• Builder’s risk insurance
• Professional liability insurance
• Construction liability insurance
• Cybersecurity insurance
• Errors and omissions insurance
• General liability insurance
• Commercial auto insurance
• Worker’s compensation insurance
• Property insurance

An insurance broker will help you determine the types and levels of coverage that would best serve your business. A broker can also shop around to ensure you have the best price for the plans you need.

SHOULD I USE AN INSURANCE BROKER FOR EMPLOYEE BENEFITS?

It is common for employers to utilize insurance brokers to develop their employee benefit platforms. Benefits are an expectation of employees. Many employees would even choose a job with lower pay for better benefits. Thus, benefits are a significant part of an employer’s value proposition. As such, employers must bring all they can to the table to attract and retain employees.

There are numerous employee benefit plan options to consider, including:

• Medical insurance
• Dental insurance
• Vision insurance
• Worker’s compensation insurance
• Short-term disability insurance
• Long-term disability insurance
• Sick leave
• Vacation time
• Paid time off
• Long-term care insurance
• Death and dismemberment insurance
• 401(k) plans
• Mental health benefits
• Employee assistance programs
• Travel insurance

Due to the number of benefits options available to employers, working with an employee benefits insurance broker can take a lot of legwork and guesswork out of the research process. Organizations of different sizes and types have different needs, and an insurance broker can ensure you have the benefits in place to meet those specific needs, along with your budget.



Insurance brokers are also in-the-know regarding federal, state, and local employment laws. Therefore, they can ensure your benefits meet the legal requirements for the areas in which you conduct business or where your employees work.

SHOULD I USE AN INSURANCE BROKER FOR AUTO INSURANCE?

Auto insurance is one type of insurance many individuals choose not to work with an insurance broker to secure. Auto insurance is required by law, and there are numerous carriers available, including State Farm, Geico, and Prudential. Individuals can shop around and determine the best rates and benefits before selecting a provider.

Individuals might choose to work with an insurance broker to secure auto insurance if they don’t have the time to do the shopping themselves. Also, a broker might be able to get a better price for insurance if they receive a broker discount.

If you are self-employed or operate a business, it is often a good use of time to work with a broker for commercial auto insurance requirements for your business.

I’M SELF-EMPLOYED. SHOULD I USE AN INSURANCE BROKER FOR PROFESSIONAL INSURANCE?

Many self-employed individuals wear several hats in their businesses. In addition to being the operations manager, they are the accountant, HR manager, sales representative, and marketing manager. With their hands in so many areas, insurance doesn’t need to be one of them.

Insurance brokers can work with self-employed individuals to ensure they are protected. Typical self-employed insurance coverage to consider includes:

• Professional liability insurance
• Errors and omissions insurance
• General liability insurance
• Commercial auto insurance

I’M BUYING A HOME. SHOULD I USE AN INSURANCE BROKER FOR HOMEOWNER’S INSURANCE?

Buying a home is a big decision. Whether you’re buying your first home, a vacation home, or moving and purchasing a new home, there are a lot of moving parts to consider. Purchasing homeowner’s insurance is one of them. Securing the right level and type of homeowner’s insurance is required to close on a home.

Many realtors and real estate agents will have an insurance broker resource. These brokers can work with you to ensure you have the type and level of coverage you necessary. This can make it easier to close on your home with the required insurance in place. 

There are also special considerations for homeowner’s insurance that a broker can walk you through. For example, most homeowner’s insurance will not cover damage due to flooding. For homes in specially designated flood zones as outlined by FEMA, flood insurance is also required. Homeowners need to show that they have the right type and level of flood insurance coverage when closing on a home.

SHOULD I USE AN INSURANCE BROKER FOR PERSONAL INSURANCE?

In addition to homeowners, medical insurance, and auto insurance, there are other types of personal insurance you might need to consider. Additional types of private insurance include:

• Life insurance
• Flood insurance
• Auto insurance
• Disability insurance
• Long-term care insurance
• Dental insurance
• Vision insurance
• Death and dismemberment insurance
• Travel insurance
• Travel medical insurance

Insurance brokers can help by working as a one-stop-shop for all your insurance needs. They can help you streamline the insurance buying process and simplify it by working with a minimal number of insurance providers (assuming it makes sense from a practical and budgetary perspective). Insurance brokers can also ensure you aren’t wasting money on insurance you don’t need by eliminating redundancies and helping you to select the most beneficial insurance coverages. 

There are instances where you might need temporary insurance coverage, such as while traveling (e.g., you might need temporary medical or travel insurance). Brokers can help you quickly secure short-term insurance policies if they discover your current policies do not provide the coverage you need. 

SHOULD I USE AN INSURANCE BROKER OR AN INSURANCE AGENT?

Insurance brokers and insurance agents both help individuals and businesses secure insurance. Some brokers and agents specialize in a particular type of insurance, whereas others are generalists representing various insurance types.

A primary difference between an insurance broker and an insurance agent is that the insurance broker works on behalf of the consumer, and an insurance agent works on behalf of the insurance company. In other words, insurance brokers work for you, so you can rest assured knowing you are getting the best plans and pricing to meet your specific needs and interests. 

KBI OFFERS INSURANCE BROKERAGE SUPPORT FOR INDIVIDUALS AND BUSINESSES

KBI has decades of experience in supporting individuals and businesses in securing insurance policies for a variety of needs. We will work with you to assess your current risks and exposure to provide recommended insurance types and levels to protect you, your home, family, and business.

We forge a long-term relationship with our clients, so you never have to go back to the drawing board when you need additional coverage or to make adjustments to your current coverage in the future.

Contact us today by submitting our online contact form or calling us at 408.366.8880. We look forward to working with you!