When it comes to working with an insurance agent, more isn’t better.
When purchasing insurance, there are risks if you choose to go the path of dealing with multiple agents.
Unlike medicine, where a second opinion is often a prudent course of action, insurance is one area where two minds are rarely better than one.
Following are some of the dangers of dealing with multiple insurance agents:
Higher Prices: The threat to your bottom line is very real. Dealing with multiple insurance agents increases the risk of purchasing redundant coverage options. An agent who is familiar with all your insurance needs is able to provide comprehensive coverage without duplicating other coverage options. For example, rather than having to write an entirely new policy, it may be possible to add a rider to an existing policy.
Gaps in Coverage: As if paying for duplicate coverage wasn’t a sufficient threat, the risk of leaving out important coverage is especially high when working with multiple brokers. Finding out about a “coverage gap” is one lesson most small-business owners can’t afford.
Claim Complexity: Having a trusted agent to turn to in the event of a claim is often as critical as the terms of coverage. Not only is the agent able to expedite filing the proper forms and to inform you of progress, but he or she becomes instrumental in coordinating the process when multiple policies are impacted.
Lack of Continuity: When working with a single agent, everything you need is in one place – from annual updates of inventory and equipment to a single source of contact in the event of an emergency.
Thus, dealing with multiple insurance agents can lead to redundant purchases, gaps in coverage, and lack of continuity. Although it’s your decision, working with a single agent is in your best interest.