Why You Need A Benefits Broker

May 17, 2021

Selecting an employee benefits broker can feel like a daunting task. You might know what you’d like to offer your employees, but it gets confusing when it comes to actually finding the benefits for your organization. Brokers can vary significantly in the services offered to you and your employees. The size of your group will impact what that broker is willing to provide.

In this post, we will take the confusion out of choosing an employee benefits broker that’s right for your company’s needs, how they will help you streamline your benefits, and when to know when it’s time to find a new one.

What is an employee benefits broker?

An employee benefits broker is a company that helps employers procure, administer and service employer-sponsored insurance. This brokerage is hired to find health coverage for employers and broker additional insurance policies such as life, disability, and dental insurance. They will help you find the right coverage at the right price for your organization to meet your employee’s needs and save you money.

Keep in mind, a good broker won’t stop at merely brokering a deal for your organization. They should also provide any necessary communication regarding your plan options and help you make the best decision for your company. They won’t keep anything hidden, will truly be looking out for you and your employees, and serve as a one-stop resource when they have questions about their coverage.

We believe that brokers should serve as a key extension to your HR function and assist with workforce communication regarding benefits and open enrollment. Employees need to know exactly what they’re getting and who better to educate them than the expert in the field?

Limit Expenses and Maximize Value for Your Employees

You want to get the best value possible while remaining in your benefits budget. A good broker will help you do that by explaining in detail the different types of policies and funding available. Employees should receive custom benefit guides that clearly explain what coverage is provided and the cost per pay period.

When employees use the benefits, their share of the cost of services shouldn’t be a surprise. Your broker should be communicating clearly, providing detailed summaries and employee support to help employees get the most out of their benefits.

Signs You Need a New Insurance Broker

If your insurance broker is not quite hitting the mark, it might be time to find a new one. Signs that it might be time to find a new broker include:

  • Your broker is willing to shop for better rates but never recommends changing insurers.
  • Regulatory compliance is rarely discussed.
  • They never ask about employee absenteeism and the overall health of employees.
  • Employees do not have direct access to the broker for help with claims and benefit questions.
  • It’s unclear to you how or how much your broker is being paid.

Benefits brokers should be providing new information throughout the year, not just at renewal time. If it’s been a while since you or your employees have heard from your broker, it’s time to look elsewhere.

When selecting a broker, it is essential that you make sure they communicate well and appear to have you and your employees’ best interests in mind. Follow the steps above as a guide to selecting the best broker for your organization which will save you time and headaches.

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5 Critical Facts Your Benefits Broker May Not Be Telling You

How do you know you have all the information you need to make the best choice about your benefits plan and broker? There are many questions most businesses don’t think to ask their brokers, and most brokers won't tell you everything.

Don’t open yourself up to compliance problems or spend more than you should. Download our free guide to ensure that your broker has your best interests at heart and you are protected from unnecessary risk exposure.

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