How can an insurance broker offer a free service?

A health insurance broker is often the best way forward when you are trying to find the best plan for your and your employees. After all, it’s a lot of work for you to do on top of trying to run your company and keep everything under control.

However, a broker can cost you extra and that might not be in your budget. Is it possible for an insurance broker to offer a free service, and why are there fees in the first place? This guide has everything you need to know to take the next step forward.

What Services Does an Insurance Broker Provide? 

A health insurance broker is able to find you the best insurance plan for you and your staff, ensuring that the packages have all of the benefits that they would like to see and that they come at a price that’s affordable for the company.

The most important thing to remember about an insurance broker is that their loyalty is only to you, the client. They have no affiliation with specific companies, which means you are only ever getting their honest selections without the risk of feeling like they are getting a commission.

An insurance agent, on the other hand, does receive a commission from their affiliated insurance companies. This means that you are getting a less honest result and something that you know is likely based on their own affiliations and interests.

Insurance brokers will always do a great deal of research to find the perfect package for you and ensure that all needs are met. They tend to have connections with multiple companies and will put you first throughout the process. Their dedicated research is one of their best qualities.

Why Are There Insurance Broker Fees? 

The reason why insurance brokers charge fees is that they don’t take any commission when you choose an insurance company. When you use their services, the fee that they charge for their time is the only way they make any money.

The amount that your chosen broker will charge does tend to vary according to who you go to. Some might charge 10% of your total insurance package price, others 15%, but they are worth it for the mere fact that they are completely independent.

Can an Insurance Broker Offer a Free Service? 

An insurance broker will not typically offer any free services. This is because their fees are the only way they can make money. If you go with an agent, there is the potential for a free or reduced-fee service because they make commission, but there is also the risk of biased results.

To Conclude

An insurance broker can be invaluable when you are trying to find the best services for your business. After all, you want nothing more than a package that keeps all your staff happy. They take the time and effort out of it for you, but they can’t offer you free services – so be prepared to pay or risk the potential bias of an agent instead.