If asked the difference between an insurance company and insurance agency, most Americans would be left scratching their heads. But the distinction can be made in just a few words: authority, power, and control.
Insurance requires many different levels of companies to secure the necessary coverage, handle the service needs, and possibly most importantly, adjust and settle claims.
Insurance agencies are tasked with selling the policies for compensation. But it is very important that the insurance agent has no authority, power, or control over the claims portion of the protection. To put it plainly, an agency handles sales through various outlets (known as insurers) and their control is over who they ask for a quote. Some agents have exclusive agreements, while others have unique agreements or common agreements.
Beyond the quality of service offered, access to exclusive insurance programs (protected by agreement) is probably the biggest distinguishing factor between agencies.
How do Telcom Insurance Group and M&M Associates differ from all others?
We have two exclusive programs that cover every state and every type of insurance. Because we only allow local independent agents to work with us on an extremely limited basis, no one else matches our level of exclusive market control.
Now to define an insurance company. Note that some of the services that an agency offers actually come from the insurance company. Loss prevention is a great example, when an insurer offers things like risk management it is included in the premium paid and no other cost is born by the insured.
Another service is the handling of claims. This really is the most important feature of having coverage and policy. When your possessions are damaged, you want a fair settlement. When a third party is injured and making a claim against you, it is not only the financial impact but your reputation at stake. In unique or common agreements, the full authority for claims is at the insurer level. In contrast, when exclusive agreements exist, the agency or agent may have some input as well.
What sets the Rural Trust Insurance Company apart?
It is owned by 50 companies in the telecom industry. That means it has full control of all things involving insurance and all products developed for the telecom industry.
The Rural Trust Insurance Company is very transparent, led by corporate officers and owners you know and trust. While this may seem to be a modest difference, try having a problem with a publicly traded insurance company and see how deep you can get into that organization for help!
For claims, you will speak to someone from the insurance company at a very low level and for anything else, you will be directed to the agent – someone who has no real power over the insurer. With Rural Trust, on the other hand, even if the agent is involved (assuming it is Telcom Insurance Group or M&M), the common ownership means you are in direct contact with the ultimate authority and power of the insurer. The difference doesn’t seem so subtle now, does it?
Our team is here to serve yours, so feel free to get in touch!
