There are several major differences. IAC does not sell insurance. IAC is essentially an extension of your organization, representing your best interests. Unlike an agent/broker who is hired by the insurance company to sell insurance, IAC works solely on your behalf and provides only unbiased advice. IAC saves you time and money, helps lower your premium and assists in broadening your insurance coverage.

Doesn't my current agent/broker represent me?

Not really. Agents/brokers are exactly that -- "agents." They work for and are financially compensated by the insurance companies. The higher the premium, the more commission the agent makes. They are influenced by the insurance companies who offer the higher commission, not necessarily the broadest coverage. In addition, they have contingency plans that provide extra income for the amount of business placed with a particular insurance company.

I have worked with my current broker for years. He/she always seems to look after our organization. Why would I need IAC?

Agents/brokers serve a good purpose, but they have an inherent bias since they represent the best interests of the insurance companies - not you. The agents/brokers also have no incentive to reduce premiums because it reduces their commission, or to review the recent developments in coverages. IAC works with the agent/broker as your representative by assuming the role of an "in-house" insurance and risk management director.

What if I haven't had any coverage problems?

That is great. But why should you find out the hard way by having a major uninsured loss jeopardizing your organization’s assets? Insurance premiums and coverage options have been changing rapidly. Unless you obtain competitive bids every 3 years, you won't have any idea how much money you are losing by over paying insurance premiums or whether you have inadequate coverage.

When should I obtain competitive bids with other agents/brokers?

Every 3 years in today’s insurance marketplace, since you may be paying for more coverage than you need or at a higher premium. You may save thousands of dollars by obtaining competitive bids. In addition, you may have gaps in coverage due to company growth or other changes within the organization. This would be an opportunity to ensure adequate coverage based on your needs.

Can't I do this in-house?

You certainly could, if you paid someone with significant risk management and insurance coverage experience to be a permanent member of your staff. With IAC, you outsource the hassle and expense of this role, while retaining an advocate for your company that can help level the playing field.

Aren't typical insurance contracts boilerplate between companies?

Absolutely not! Corporate insurance contracts can vary substantially from one insurance company to the next. Insurance contracts include many exclusions and modifications. If you are unaware of these clauses you may inadvertently create gaps in your coverage and expose your organization’s assets to serious uninsured losses.