Fee Only Insurance Consulting / Fee Only Insurance Consultant

I was asked the other day what the difference is between my brand of Fee Only Insurance Consulting and the work that a traditional insurance agent performs.

An insurance agent is paid to sell and service insurance. A fee only insurance consultant never sells insurance, but provides advice and counsel on insurance issues.

An insurance agent has relationships with insurers built around commissions, bonuses, overrides, and incentives. Some agents are employees of the insurance companies they sell for. A fee-only insurance consultant never accepts fees, commissions, or bonuses from an insurance company or an insurance agent.

Fee-only insurance consultants are paid a fee by the insurance-buyer to provide information, counsel, and advice.

My work as a fee-only insurance consultant does not replace an insurance agent’s work.

My involvement in an account does not imply anything negative about the current agent. I’m brought in as a part of normal due diligence.

In larger companies, risk managers performs the work I do. Small- and medium-sized organizations use fee-only insurance consultants.

I take the idea of fee-only insurance consulting further than most consultants do. I never accept gifts or gratuities. I don’t accept tickets to sporting events, gift cards, meals, or promotional items. I do not invest directly in insurance companies, agents, or others in the insurance business.