Broker vs Agent
An insurance broker is a professional who helps consumers find the best insurance policy for their needs. They work closely with clients to research coverage, terms, conditions, and prices. After this research, they recommend the insurance policy that best fits the client's requirements. Unlike captive and independent agents, who represent specific insurance companies, a broker's main responsibility is to the client.
An insurance agent is a professional who sells products from an insurance company to consumers for a commission. They assist consumers in choosing the right insurance. The agent works on behalf of the insurance company during the transaction. They can manage the entire process from beginning to end.
Blue Rock Insurance Services, Inc. runs primarily as an insurance broker. Therefore, we work for and in the interest of our clients, as it has always been and will continue to do so diligently.
What is Insurance?
Insurance is a contract, represented by a policy, that provides financial protection or reimbursement against losses. This protection comes from an insurance company. The company pools the risks of its clients to make payments more affordable for those insured. When you purchase insurance, you transfer the cost of a potential loss to the insurance company. In return, you pay a fee called the premium.
Insurance is a form of:
Financial resources
Risk sharing and management
Wealth management
Loss control
Investment
Social and emotional alleviation
Compliance to regulations
Why Buy an Insurance?
Insurance acts as a financial protection. It is a way of managing risks. You could pay out less in the event of mishaps that require spending. For a fee, you could have numerous financial benefits and other advantages.
Insurance helps you: own a home, because mortgage lenders need to know your home is protected; Drive vehicles, because few people could afford the repairs, health care costs and legal expenses associated with collisions and injuries without coverage; Maintain your current standard of living if you become disabled or have a critical illness; Cover health care costs like prescription drugs, dental care, vision care and other health-related items; Provide for your family in the event of a death; Run a small business by managing the risks of ownership; Cover liability cost in the event of a lawsuit; Take vacations without worrying about flight cancellations or other potential issues.
For business owners, proof of insurance coverage, known as a Certificate of Insurance (COI), is often required by clients. This documentation is typically necessary before securing a project or conducting business.
How To Obtain an Insurance Policy?
Insurance, like many other products, can be purchased from an insurance company as a commodity through an agent. However, obtaining an insurance policy can be laborious and tedious. There are many forms to fill out, documents to collect, coverage to explore, and costs to consider. The application and procedure are complex, making them prone to errors. These mistakes can lead to delays and extra charges on your insurance policy.
This is where we come in to do it for you in the right way to meet your needs. All you have to do is provide the required information and documents. We will make your purchase of insurance as simple as it can be at a competitive cost.
Who Needs Insurance?
Insurance is so vast, there are numerous varieties of insurance policies that offer different coverage, to the extent that it is customized to fit almost every circumstance and person. Not limited to:
Business owners
Parent
Children
Home/estate owners
Renters
Vehicles and valued item owners
Employees
Traveling individual/group
When Should You Buy Insurance?
For business owners, insurance like workers’ compensation and general liability is legally required to run a business. Therefore, business owners should purchase insurance before initiating services and hiring to avoid any possible liability.
For individuals, it depends on the needs and the type of insurance you’re looking for. But it is never too early or too late to start investing in insurance. You should buy insurance when you own a home, a car, a family, or when you plan to travel.
Generally, the quoted premium goes up as you age. People of a younger age may not see the need to purchase one. However, in the long term, it might serve as a better choice to purchase now than to wait, both cost-effective and safer. It’s hard to determine what might happen. Our licensed brokers are happy to provide you guidance in that matter.
Insurance Policy Component You Should Know
Premium
A policy's premium refers to its price. Insurers determine this premium based on your risk profile, which may include your creditworthiness. If you own several expensive cars, your auto insurance costs may be higher. This is especially true if you have a history of reckless driving. In contrast, someone with a single mid-range sedan and a perfect driving record may pay less. However, different insurers may charge varying premiums for similar policies. This is where we can assist you.
Policy Limit
The policy limit is the maximum amount an insurer will pay under a policy for a covered loss. Maximums can be established for specific periods, such as annually or during a policy term. They may apply to each loss or injury. Alternatively, they can be set for the entire duration of the policy. This is known as the lifetime maximum. Typically, higher limits carry higher premiums.
Deductible
The deductible is a specific amount the policy-holder must pay out-of-pocket before the insurer pays a claim. Deductibles serve as deterrents to large volumes of small and insignificant claims. Deductibles can apply per-policy or per-claim depending on the insurer and the type of policy. Policies with very high deductibles are typically less expensive because the high out-of-pocket expense generally results in fewer small claims.
