Choosing a Broker for your Group Benefit Plan
As a business owner, group benefit Plans are one of your largest business expenses, second only to salary. As such, doesn’t it make sense to choose a broker who is as invested in your company as you are? Rather than just pulling a name out of a hat, it’s as important to vet and interview potential brokers as it is the employees you hire. Essentially, you should be interviewing your broker because that broker will in a sense be like a contractor to you. You should be able to rely on your broker to be there when the insurance company isn’t playing ball. After all, who else is going to look after you if your insurance company suddenly stops approving claims or increases premiums?
To make sure you get a broker who is looking out for your best interest, you should consider asking some questions. Here are a few you could start with.
What certifications and licenses do you have?
You want to ensure that your broker is currently licensed to do business in the provinces where you have offices. A valid license indicates that your broker was trained, educated, and certified to conduct business. Also, check for any disciplinary actions that might have been filed with the regulatory insurance council for those provinces.
What services do you provide?
Many benefits brokers manage much more than just basic health care coverage. Choosing a broker who is familiar with all types of coverage, including life, dental, vision, disability, and long-term care, is beneficial in that you’ll have a one-stop shop for all of the programs in your group benefit plan.
As well, you should consider whether the broker is going to be around when you need them. Think about your current benefit plan and the broker you worked with to get it. When was the last time you saw that broker? If your broker isn’t checking in with you at least a few times a year, you might want to check in on them. At the very least they should be there to assist when you need them. Otherwise, why would you use them?
Are you independent or do you have a team?
Your broker should have the resources of a full team at their disposal. Whether you’re working with a big firm or an independent broker, they will have some form of an administrative team backing them. If you’re inclined to support your local independent broker, ask about the MGA they use. Once you are comfortable with that information, you can trust that the broker has a good team backing them.
Will you help us with open enrolment communications?
This is a biggie. Your workforce wants to better understand available group benefit plans, but open enrolment marketing programs are an enormous undertaking. Having a broker who will do the heavy lifting in this area will free you up to focus more on strategy and educating employees on the right benefits packages based on their needs.
What are your fees?
Brokers can be either paid commissions by insurance companies, or they can charge a flat fee. More brokers are moving to a flat fee structure, where you’ll pay based on the number of employees covered per month.
All in all, you want a broker that is not only helpful, but someone who also cares about the success of your business and your employees. The right broker will keep you informed and up to date on your group benefit plan programs, legislation, and business trends so your business can continue to run efficiently.
