I was initially asked to write about the qualities a medical professional should seek in an agent for insurance. However, this whimsical thought quickly gave way to the seriousness and the need to answer the question. Insurance is the most significant long-term expense a physician will incur over the course of their career. It is crucial to have the right representation and coverage. You can save money by choosing the right agent and ensure proper protection. This is why it is important to do your research.
The agent, the carrier and the agency are all equally important. When placing insurance, a medical professional must carefully consider the pros and cons of each.
The same approach I used to select a doctor when selecting an agent for my clients would apply to them with regard to choosing the agent. The agent is the “relationship”, so the acronym “CARE” stands for Considerate, Accessible Responsible Experienced.
Consider
Does the agent respect your time? Is the agent able to understand the demands of your practice? Are you able to deal with applications efficiently and quickly? Are there meetings that can be arranged at your convenience?
Accessible
Do you have emergency numbers that the agent can provide? Is it possible to reach the agent easily? Is the agent available to answer questions and return phone calls promptly? Is the agent able to provide competent and experienced support staff to address your concerns?
Responsible
Is the agent reliable? Are promises kept? Are you contacted by the agent to obtain information about your coverages? Are you confident that the agent will best serve your needs?
Experienced
Is the agent familiar with the specific risks and exposures of the medical industry? Are they a “specialist” in the medical field or are they generalists who serve many industries? Participates the agent in meetings and events of medical associations? Participates the agent in educational opportunities that improve medical expertise?
While all four of these factors are important when choosing an agent, I am most concerned about the expertise and experience. I want the best possible care and treatment in the event of a heart attack.
The Agency
The consistency of the services you receive is dependent on the infrastructure provided by the agency. Therefore, it is important to evaluate the strengths and capabilities of both the agent as well as the agency. Is the agency able to provide additional resources for processing applications, policies, and claims? Do you receive proactively provided resources (advisories and newsletters, seminars or workshops, etc.) from the agency? To help you manage your risk? Are the staff experienced and trained in dealing with the medical needs of professionals? Does the agency specialize in the medical field, or does it serve everyone who needs insurance?
Another factor to consider is the importance of time. Is the agency able to handle all your insurance needs, from workers’ compensation and medical malpractice to group benefits and workers’ comp? You don’t have to deal with multiple agents if one agency is able to meet all your insurance needs.
The Insurance Company
The insurance company receives the majority of your insurance money in anticipation of you needing it in the future. Choosing the right company can make the difference between having solid protection and spending tens or hundreds of thousands of dollars to get what you thought were good savings in the short term.
The financial stability and financial strength of the carrier are important considerations. Many carriers offer insurance products to multiple industries and markets. You should also consider the longevity of the carrier. How well does the agency defend doctors and handle claims? Does it offer resources to clients for managing their risk, like the agency?
An advisory board made up of clients of our agency stated that their greatest concern was not the cost of the premium. They wanted to be sure that their insurance carrier would offer a strong defense against any claims against them. It was more important than any other thing to defend their reputation. Do they have a track record of defending their reputation?
Talk to your peers, in addition to doing all the usual due diligence. Are they familiar with the agent, agency, or carrier? Are they willing to recommend them?
Warren Buffett, the legendary investor and investor, asks three questions before he invests in a company: Are they likeable? Are they trustworthy? Do they trust me? He will not answer any of the three questions if he is unable to affirmatively answer them. Are you able to trust, respect, and admire your insurance agency, carrier, and agent? Are you confident that they will be able to meet your future needs? Your future could depend on what you decide!
