How Do I Choose an Insurance Agent?
Choosing a qualified insurance agent can help you sort through the many coverage options that will best fit your health situation. We all hate shopping for health insurance, but you can't do without it. When you own a business, you'll be absolutely overwhelmed by the number of different types of insurance you'll need or want. There's health insurance -- which can include medical, dental and vision. There's fire and theft insurance, accident and liability coverage, maybe even malpractice.
Retirement, disability, long-term care, business interruption . and? And if you have employees, don't even think of leaving out worker's compensation.
To figure out your insurance coverage, you'll need a good insurance agent -- ideally, one who understands business insurance for companies of your size and industry. It's best if he's a "broker" who can offer you policies from a number of different companies rather than just representing one insurance company's products.
If you don't know any insurance agents, ask for referrals from other business owners or from service providers. We can refer you to a qualified insurance agent in your local city to help you go over the best insurance plans for your family or business. You'll want someone whose advice you can trust because you are likely going to rely on their recommendations for the type and amount of coverage you should have. Also, check with your industry trade association. Many trade associations offer lower-cost insurance specifically designed for the needs of companies such as yours. But still be cautious: just because a policy comes from a trade association doesn't mean it necessarily meets your needs.
When you sit down with an insurance agent, consider three different aspects:
Incentive: insurance you want because it's desired by your workers (including yourself) such as medical, dental, life insurance, retirement.
Protection: insurance in case something unexpected happens: liability, accident, fire, theft, business interruption.
Legal necessity: insurance others require -- perhaps your landlord, such as fire or liability, or required by state law, such as worker's compensation if you have employees.
Health insurance is the kind of insurance most desired by your employees. To keep costs manageable, you might want to look for health insurance policies provided by either:
• HMO (Health Maintenance Organization) -- one specific provider of physician and hospital services, or
• PPO (Preferred Provider Organization) -- for a wider range of choices of doctors and hospitals that agrees to set prices for services. Make certain there's a long -- and good -- list of choices for you and your employees.
Keep in mind most states require you to offer the same amount or kind of coverage to all employees, so you can't get great coverage just for yourself, while giving miniscule coverage for your workers. In some states, if you have a small business, insurance companies are legally required to offer you medical insurance regardless of the previous medical condition(s) of the workers.
How it Works
Let's say you have a serious chronic illness -- such as diabetes or heart disease -- and you have been unable to get individual health insurance coverage. If you have a legitimate small business with at least two people, you cannot be denied health insurance coverage for your company. The insurance company may not even be allowed to set or raise your rates beyond statewide limits.
So, if you're a sole proprietor with no other workers and are having difficulty getting -- or affording -- individual health insurance, it would be wise to see whether adding a second person to your business -- even a spouse or grown child -- might significantly improve your health insurance options. You could save a lot of money and get help with your company at the same time! One place to start is with your state insurance commissioner's Web site. The National Association of Insurance Commissioners has links to each state insurance office Web site at www.naic.org/state_contacts/sid_websites.htm. |
