4-minute read
Breaking up can be hard to do. Whether it’s a personal relationship or a professional one, the act of parting ways can be tough, with feelings of discomfort, guilt, and the looming fear of the unknown.
What about breaking up with your insurance brokerage?
Well, the stakes in doing so can be high — after all, we’re talking about the security of your business, your employees, and perhaps even a bit of your peace of mind.
But sometimes, it’s the right move. Here’s what you’ll want to think about to navigate this delicate process with as much grace and clarity as possible.
First, recognize the signs that it might be time to move on. If your broker is consistently hard to reach, slow to respond, or fails to keep you updated, it’s a sign that you’re not a priority.
If you feel like you’re always in the dark about your coverage, costs, or claims, that’s a problem.
Your insurance brokerage should be an open book, not a mystery novel. And if your broker isn’t offering solutions that match your business’s evolving needs or is making constant errors, it’s time to reassess.
Once you've decided that enough is enough, it's time to do your homework.
Explore other brokers in your area or within your industry. Look for brokers who specialize in your specific type of business or who come highly recommended by peers. Ask for recommendations from your network of business owners. Word of mouth is powerful. Make sure any new broker you consider can offer what your current broker lacks. You deserve better, right?
Once you’ve found potential new suitors, be sure to gather all your documents, including copies of your current policies, claims history, and any other relevant documents.
Next, set a timeline for the switch and coordinate this with your new broker to ensure a smooth transition.
The hard part is actually breaking up.
Schedule a meeting — it’s best to have this conversation by phone, over a video call or even in person. It’s more personal and respectful than an email. Be honest. Clearly explain your reasons for leaving. Focus on the issues rather than personal attacks.
For example, say, “We need more proactive communication and support, which we feel we’re not currently getting.”
Thank them for their service and recognize any positive experiences you’ve had. Provide them with a reasonable amount of time to wrap things up and transfer your account to your new broker.
To ensure the most seamless transition possible, work closely with your new broker. Coordinate your coverage to make sure there’s no gap during the switch. Inform your team about the change and what it means for them. Go through your new policies with a fine-tooth comb to ensure they meet your needs.
As we said, breaking up with your insurance brokerage isn’t easy, but sometimes it’s necessary to protect your business’s interests.
By approaching the process thoughtfully and professionally, you can minimize disruptions and set the stage for a better relationship with your new broker. Remember, at the end of the day, your goal is to find a partner who understands your needs, communicates effectively, and helps you navigate the complex world of insurance with confidence.
The Mahoney Group, based in Mesa, Ariz., is one of the largest independent insurance and employee benefits brokerages in the U.S. For more information, visit our website or call 877-440-3304.
This article is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.