Article Link: http://exchangepress.com/article/insurance-for-child-care-providers/5021972/
Let’s face it; nobody looks forward to the insurance piece of owning or operating a business. Child care providers have a unique set of needs and exposures, and the insurance needed is no exception. It is crucial to find the right agent or broker, insurance carrier, and policies to provide the proper types of coverage for your operation and the children in your care.Types of Insurance Representatives
An insurance agent usually contracts with one or more insurance companies and is a representative of those companies. The agent must be appointed by the insurer, which is a contractual agreement that specifies the products the agent may sell. The agreement also spells out the agent’s authority to initiate a policy on the insurer’s behalf. An agent with areas of expertise and coverage typically contracts with multiple insurance companies, thereby giving you insurance options to choose from.
A broker is an individual who represents the customer, but who is paid by the insurance company. Brokers are not appointed by insurers. They submit insurance applications to insurers on behalf of their clients; however they do not have authority to bind coverage. To initiate a policy, a broker must obtain a binder from the insurer. A binder is ...