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After reading my teammate Nick’s article last week, I thought it would be prudent to take a deeper dive into two titles that are treated as synonymous, typically for ease of client understanding, despite being very different in practice and responsibility. An insurance agent is an insurance professional whose duty is to the insurance carrier. A insurance broker is an insurance professional who negotiates on behalf of individuals with insurance carriers. This distinction is key as insurance works a bit counter to how the public thinks. To break it down, an insurance policy is essentially a contract whereby an individual will pay a premium (money) to an insurance carrier that will pay for potential claims (injuries, accidents, property loss, etc.), if these damages occur in a particular fashion. What most of the public is unaware of is that the insurance company is not offering a policy to the individual, it’s the inverse. When an individual completes an application, they are presenting an offer to the insurance carrier of your risk transfer, and if the carrier accepts the offer, they dictate the price. The contract isn’t bound until payment is made, but the initial design of the offer lies in the hands of the client, not the insurance company. Captive Agencies and their agents If you work with an insurance agent, their responsibility is to the insurance company they are affiliated with, not to the purchaser of the insurance policy. The insurance agent only has access to sell products that are offered by their affiliated carrier, and so the options may be limited in scope to what the company is willing to take on themselves. Additional coverage for particular perils (specific causes of loss) may be outside of one insurance carrier’s risk appetite, and so they may not extend coverage for certain actions, or the price may be exorbitant to do so. There may be different insurance companies with wider appetites or lower prices, but an agent doesn’t necessarily have access to those options, so there is a higher likelihood of declinations, lesser coverage offered, or higher-than-market costs for insurance. From an insurance buyer’s perspective, how can this be avoided? Enter the Insurance Brokerage, and their brokers An insurance broker’s job is to negotiate on behalf of the individual, not on behalf of the insurance carrier. A broker has the ability to go to market, shop out the same risk exposure across multiple carriers, and then go back and forth with several carriers to get the best combination of price and coverage limits for their client, the individual. It’s more work, as instead of one application, there are multiple with their own formats and questions to answer. The commission (how an insurance carrier pays the insurance professional) can be less versus the compensation structure with a captive agency, but insurance brokers trade a lower commission payout for a wider net of carrier options that allow for the broker to tackle harder to write risks (coastal exposure, higher percentage of surgical procedures, adverse claims history, etc.). As there is no tie to an individual carrier, if the benefits lessen or the pricing rises above market-rate in a given year, the broker can rinse and repeat the process, going back to market and finding the best solution at the current time. It’s this level of flexibility that allows a broker to serve their clients for years to come as variables in the market change. At CFS Dental Division, we operate as an insurance brokerage across the United States. We take pride in our market offerings, our ability to educate our clients on the pros and cons of their policy choices, and our flexibility to adapt to an ever-changing market. If you’re interested in having a partner who negotiates for you and has your back as life changes, you can reach out to us here . Written by: Conor DePalma
When it comes to protecting your business or personal assets, how you shop for insurance matters just as much as what you buy. While going directly to a single insurance company may seem convenient, working with an independent broker offers significant advantages that can make a real difference when it counts. First, choice matters . A direct insurance company can only offer its own products. A broker, on the other hand, represents multiple carriers. That means instead of getting one option, you get access to a range of coverage forms, pricing structures, and underwriting appetites. This competition often results in better coverage and more competitive premiums. Second, brokers work for you — not the insurance company. Their role is to advocate on your behalf, helping you compare policies objectively and understand the fine print. Insurance contracts can be complex, with exclusions and limitations that aren’t always obvious. A broker helps you navigate those details, so you don’t discover gaps in coverage after a claim. Third, as your needs change, a broker can adapt with you . Whether your business grows, your risks evolve, or the market shifts, a broker can re-shop your policy and negotiate with carriers to ensure your coverage keeps pace. Finally, when a claim happens, having a broker in your corner can be invaluable. Instead of facing the carrier alone, you have a professional who understands the process and can help facilitate communication. To wrap it up, buying direct gives you one perspective. Working with a broker gives you options, advocacy, and expertise — and that combination often leads to stronger protection and better long-term value for you and/or your business. Written by: Nick Cepparulo
When purchasing a personal disability policy to protect your income, it is crucial to purchase a policy that properly reflects your specific needs as a dental professional. Within disability policies there are key features that your policy must include to make sure in the event of a disability, your benefit is paid properly, and you are protected in the way you deserve. What is The Most Important Feature? Own Occupation Rider This rider can be classified by several different names including True Own Occupation Rider, Regular Occupation, or Own Occupation. Own Occupation means that you are considered to be disabled and eligible for your benefit if you cannot perform the duties of your specific job. If you have a broader definition of disability, such as Social Security Disability, to receive your benefit you would have to be disabled to the point you cannot perform any job whatsoever. This is a crucial difference as you may not be able to perform clinical dentistry because of your disability, but you can receive the monthly benefit from your policy as well as performing another line of work, in most cases actually working as a professor at a dental school or residency! Won’t my benefit become less valuable over time due to inflation? Cost of Living Adjustment Rider (COLA) The COLA rider is a guard against inflation to protect your buying power while receiving your benefit. While on disability, your benefit will increase annually by 3% to ensure your benefit does not lose value due to inflation over the period that you are on claim. What if I am not fully disabled but still suffer losses from a long-term injury? Partial Disability Partial disability benefits pay out when you lose 15% of income, time, or duties due to a disabling event. For example, a dental professional hurts their hand and is only able to work 4 days a week instead of 5. This would be a 20% loss of income, time, and duties and would result in a 20% partial disability payout in proportion to your current disability benefit. The difference between policies is in how partial disability is calculated. In calculating your pre-disability income, carriers will refer to what is called a lookback period. A lookback period is the number of years that a carrier will take into account previous earned income to decide the amount of disability benefit given in relation to your total monthly benefit at the time of disability. Some carriers will offer longer lookback periods and take the average of the best two years of earnings. Other carriers offering disability may have shorter lookback periods offering less forgiveness to years with lower earnings. These are the key elements in a disability policy for dental professionals to be aware of when purchasing a policy or evaluating an existing one. There are however different supplemental benefits that the carriers offer with their policies to differentiate themselves. For more information on the key features to look for in a disability policy or the supplemental benefits offered by carriers, contact a CFS Agent, we’re here to help! Written by: Neal Cudahy
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