How insurance consulting can benefit your business

38151138 - man explaining something to his young colleagueIt’s been said that even the best of the best can benefit from a little advice every now and then. Just ask an accomplished Olympian in training. What do their predecessors know that they don’t yet know for themselves? The truth is, you’ll never know unless you ask someone who’s been there.

Learning about something from a new or different perspective is vitally important to gaining an overall picture and can give you the ability to make the best decisions for yourself or for others.

The same is true in all kinds of business, especially in today’s world where business happens globally and at what feels like the speed of light. When it comes to learning something new or trying to see “the forest in spite of the trees,” reaching out for help and advice can be an excellent move. Call it what you will; a guru, an expert, a sage, or for the sake of this blog, a consultant, here are just a few of the benefits your business can gain from insurance consulting when decisions need to be made.

Insurance consulting can help you avoid unnecessary conflicts of interest

For many agents in all kinds of industries, there’s almost always an opportunity for gain by profiting from a business’s decision to go with a certain client, product or service. Pharmaceutical reps, celebrity agents, etc., all have something to gain by the promotion of what it is (or who it is!) they represent. The insurance industry is no exception.

An insurance agent representing a particular company can certainly provide accurate information and advice, the same as you might receive through insurance consulting. But the difference is found in who benefits from the decisions you make. There is the potential for a conflict of interest when an agent stands to profit, through commissions, for example, from your choice of products or services, including certain (and perhaps, pricier) recommended policies over a more appropriate fit.

Insurance consulting removes this risk, as a consultant does not stand to gain financially when you make decisions about what is best for your business. Insurance consulting typically comes with its own price tag, but that tag is not based on commission or profits stemming from policies, products, or services.

Insurance consulting can help to remove your burden of risk

Part of a consultant’s primary focus should be to evaluate different levels of risk on the business’s side, performing a risk assessment, so to speak. This assessment may include a visit to the place of business, asking in-depth questions regarding procedures, and practices. A consultant may evaluate and analyze the safety of an operation or workplace, in an effort to identify the risks and factors that are specific to the business. The same assessment may be done on the industry level, as well.

Once this information is organized, insurance consulting should result in specific recommendations for how to proceed in light of these factors. These recommendations may include which policies would best fit the needs of the business, or suggestions about coverage limits. For example, if the net worth of a company is valued at $500,000, $5 million in coverage would be excessive and unnecessary. As a business owner, you don’t want to assume this extra expense!

Through insurance consulting, commercial insurance and financial services, and with a trusted approach to your business, COST Financial Group provides management and operation services to premium finance companies owned by insurance groups and businesses. For more than two decades, we have helped insurance companies create and manage viable profit centers without the work and worry of running it themselves.

We work with our clients directly to provide the solutions that will keep their businesses operating smoothly, and we make it our goal to stay aprised of state regulations to better meet your needs. Contact us today to see how our experience can benefit you!