What is an employee benefits broker?
An employee benefits broker is a hired, third-party advisor for businesses and organizations that are seeking professional insight on which insurance companies and packages offer the best benefits for both company and employees. Brokers work independently of insurance agencies, making them qualified to evaluate the offerings from several providers according to factors of cost and coverage. These brokers evaluate a company’s unique liabilities and needs, making recommendations according to the size of the company, the current benefit plan, prior claims, and industry trends.
Employee benefits brokers are helpful for small companies with a limited human resources department, though larger companies can benefit from the experience as well.
Learn more about an employee benefits broker
When do I need to be aware of an employee benefits broker?
Changes are constantly being made in both healthcare and technology areas, leading to different compliance needs and expectations for companies of all sizes. When you need to update your current benefit offerings or want to conduct a cost comparison, a benefits broker has the expertise to compare plans, educating you on which options are the most cost-effective yet attentive to your company’s needs. Companies also need strong benefits packages to attract top-level talent, and brokers can help you secure skilled laborers through coverage or benefits suggestions.
What is important to know about an employee benefits broker?
Benefits can be confusing, especially when you are trying to take care of all your employees’ different needs. Benefits brokers can look past the small issues at the bigger picture and provide a variety of services:
- Brokers look at the size of the company, key competitors, employee benefits eligibility, and annual budget to determine appropriate coverage plans.
- Many brokers rely on real-time modeling software to provide an immediate snapshot of how the insurance changes could affect your budget.
- Beyond advising, benefits brokers help manage claims, educate employees, automate the enrollment process, and coordinate all insurance policies with payroll and compliance areas.