Understanding The Intricacies Of Insurance

Want to Buy Insurance Wholesale? Qualifying Factors

Buying wholesale is something everyone looks for. Most people do not even know that you can buy insurance wholesale. To be fair, it is not exactly insurance for everyone, which is why you may not have heard of such insurance products. You can pursue wholesale insurance, if you want, but there are some qualifying factors. Yes, there are criteria involved before you can purchase wholesale insurance, although the criteria are quite different from regular-priced insurance products. Here are the qualifying factors.

Your Situation Requires Different and/or Unique Coverage

There are only special situations where you can buy insurance products wholesale. Most traditional insurance policies are property and casualty insurance, covering very specific and very typical items (e.g. house, commercial building, auto, and life insurance). Wholesale insurance is designed to cover property that these traditional policies cannot cover. It is essentially "custom" insurance for unusual or atypical coverage needs. 

You Must Provide Examples of Special Conditions

Those consumers who qualify for wholesale insurance have some very special conditions. Maybe they need excellent health coverage for ten employees or less. Maybe their employees are required to do very dangerous work, such as explosive demolition, and you, as the employer, have to protect the employees in a job that almost certainly guarantees injury and/or death. Property of medical research labs, such as cultures and sample disease trays, need coverage against loss, as it takes forever to set up this research again and duplicate the previous results before the research can continue.

These are some major risks which all other insurance companies would not consider taking on because they would lose too much money. Wholesale insurance agents are able to find and/or develop insurance products that cover the above situations, and more. High-risk situations and uncommon property need help from wholesale insurance agents, which is why these agents, and the insurance products they offer, are necessary.

A Type of Insurance Has Yet to Be Created for Your Situation

As technology progresses, and research for new products and medicines continues, there are newer insurance issues coming to light. These are situations in which there is no insurance product that can cover the losses of everyone or everything involved. A special type of insurance product has to be created to match the very new needs of the situation.

In the meantime, you might be able to cover part or most of the situation with a couple of different policies that cover very specific events, such as fire or explosion. It may take the insurance market a few months to catch on to the missing type of specialty insurance that would cover such a situation, but a wholesale insurance agent can find insurance policies and products that will cover you in the meantime.

Why These Special Situations Get Special Pricing on Insurance

If you are feeling a little jealous of smaller companies or businesses that actually need specialty insurance, you should know a little bit more about wholesale insurance. Wholesale insurance does not operate under state insurance laws. As such, they can offer less traditional, and out-of-the-ordinary, insurance products at lower prices. It does not mean that these wholesale agents or brokers are not licensed to sell insurance or that they are selling you products that are illegal.

On the contrary, the wholesalers are fully licensed, but they operate as independent agents rather than agents working for "admitted" carriers. Admitted carriers are highly-recognized, big agent insurance carriers admitted to the state's list of regulated and fee-charged insurance companies. Wholesalers are not required to pay the exorbitant fees associated with the "admitted" and regulated carriers, so the wholesalers can offer more specialty products at a better price.