Working with Multiple Agents/Agencies

Many businesses consider working with multiple agents/agencies to get quotes. In most situations this a bad idea due to how the industry works. An important concept is called “Broker of Record” (BOR). Insurance carriers will accept a submission (i.e. application) from the first agent who submits it, or on renewal, from the agent who sold the first policy. This means if multiple agents submit your application to the same carrier, only the first to submit will be able to get a quote. This can result in awkward conversations for you at a minimum, and can raise a red flag with carriers if you are a larger business. There are many industry anecdotes about carriers not offering a quote when this happens. Beltex highly recommends against using multiple agencies. One exception is if an agency has exclusive access to a policy (such as Beltex’s cyber policy) and you are considering alternatives to an agency you are otherwise happy with. The primary considerations for considering a new agency should be:

• Expertise in your coverage (cyber, worker’s comp, etc.)

• Expertise in your industry (law, manufacturing, etc.)

• Client service

• Insurance industry access (number of carriers and relationships)

Pricing

Pricing is very standard in the vast majority of cases, and one agent cannot get a different price versus others. Agents are paid on a commission percentage and may get a better rate versus their competitors, but legally cannot pass on any of this to you the policyholder (this is a highly illegal practice known as rebating).