What should I expect from a Broker-Agent who Specializes in Commercial Insurance?

When conducting your broker-agent search, it is important to verify the broker-agent's insurance license with the California Department of Insurance (CDEI). The CDI is responsible for licensing all broker-agents who sell or market insurance in California. A broker-agent is issued a fire and casualty license which enables him/her to sell commercial property and casualty insurance. A fire and casualty broker-agent is required under Section 1725 of the California Insurance Code (CIC) to prominently display their license in their office. CIC 1725.5 further requires a licensee of the CDI to prominently print his/her license number on all business cards, written price quotations for insurance products, and print advertisements for insurance products distributed in California.

While the term broker-agent is a specific license designation with the CDI, broker and agents act in different ways to secure insurance for consumers. Brokers may sell for many insurance companies and are usually paid by you in the form of a broker fee charged for placing and servicing your insurance business. Agents are appointed by insurance companies and are paid a commission by the insurance company with which business is placed. Companies like Richter-Robb offer quotes from a large number of brokers and companies that can serve your insurance needs.

Initially a broker-agent will talk with you to discuss your business operations and the exposures (the possibility of loss) that are specific to your industry and business type or service category. If you currently have business insurance, the broker-agent will ask to review your current policy. This is a standard practice used to determine the current coverage your have and what additional you may or may not need. The broker-agent is comparing limits, exposure bases, business classifications, exclusions, and endorsements in order to analyze any gaps, errors, or overlaps that may exist in your current commercial policy as well as new developments and products in the insurance industry. The more thorough and credible information your provide to the broker-agent in the application process, the better the broker-agent can assess specific insurance needs and provide you with the best options to satisfy those needs and protect your business from loss.

Richter-Robb can assist you in your commercial business insurance needs. We service in excess of 600 brokers and we are an authorized broker for several large insurance providers.