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By law, all businesses must carry some form of insurance. The basic requirements include workers' compensation if a business has employees or property and casualty to protect the physical workspace. Depending on the size and operations of the business, other insurance lines may be necessary. These may include cyber insurance for online businesses, errors and omission insurance for businesses working with contracts, malpractice for medical businesses and directors and officers insurance if executives are exposed to risk.
When a business looks to buy insurance, it can go straight to a provider or use a broker. Insurance providers actually write the policies and collect premiums, while brokers are middle-men who help the two parties reach an acceptable agreement. Brokers work for the business, not the insurance company, to provide technical expertise and offer help securing the best policy for the lowest price. Most businesses will use a broker, meaning there are three components--the business, the broker and the insurer--in many business insurance deals.
A large company will usually select a large brokerage and a large insurer to provide for its
needs. It will likely need more support to place and maintain a policy; the premiums for large companies can exceed tens of millions of dollars, and a large staff is needed to manage this type of account. On the other hand, a very small business may go straight to the insurance company, leaving out a broker, and secure a relatively inexpensive, simple insurance line. Somewhere in the middle is the "middle market" company, and for this "middle market" brokers and insurers are ideal.
As a middle market company, you have the option to seek specific middle market insurance for your business. However, you are not limited to this. You can place your policy with any insurer, large or small, and you may find great results. The benefit to buying middle market insurance is that the insurance company may be able to tailor the policy to your needs better than a large company. Further, if you place your business with a large insurance company, you will be a small client. With a middle market company, you will be an average or large client, which may result in better service.