More Than Just Rates:

Why Your Employee Benefits Broker Matters

When it comes to choosing an employee benefits broker, many businesses focus on one thing: rates. But here’s the reality: most brokers have access to the same carrier rates. What truly sets a broker apart is everything else they bring to the table. If you’re only comparing quotes, you could be missing out on the bigger picture.

Why Now Is the Right Time to Consider a Change

If you’ve just renewed your benefits with your current broker, you might assume the decision is set for the year. But now is actually the best time to evaluate whether your broker is the right fit. Employee benefits should be managed year-round, not just during renewal season. A proactive broker will support your business with compliance, employee education, and strategic planning throughout the year, not just when it’s time to sign on the dotted line.

The Power of Relationships in Employee Benefits

A strong benefits broker does more than secure coverage; they build relationships. The connection your broker has with your business and employees directly impacts the level of service and support you receive.

Additionally, the relationships a broker has with local carrier representatives and their knowledge of industry trends can make a big difference. These connections allow them to advocate on your behalf, navigate challenges, and provide insights that go beyond a standard benefits package.

Understanding the Letter of Authorization vs. Business of Record

If you’re considering switching brokers, you may come across two important documents:

• Letter of Authorization (LOA): This grants a broker permission to request quotes, plan information, and other details from insurance carriers. It does not change your official broker of record but allows them to gather information for review.
• Broker of Record (BOR): This officially designates a new broker as the representative for your business with insurance carriers. Once a BOR is signed, the new broker has full access to carrier communications, renewals, and plan management.

A LOA is ideal when you want to explore your options but aren’t ready to commit to a new broker. A BOR change is necessary when you’ve decided to make a switch and want your new broker to fully manage your benefits.

Take a Proactive Approach to Employee Benefits

Choosing the right benefits broker isn’t just about rates—it’s about service, strategy, and relationships. If you haven’t evaluated your broker recently, now is the time to start the conversation. Employee benefits are too important to leave on autopilot. Contact me directly and I am happy to share more about how Acadia Benefits, an IMA Company can support your business beyond just renewal time.

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