Knowledge Corner

Insurance brokerages are collaborating more frequently, since it’s an upside to both firms’ bottom line. Competitors become partners when they co-broker for the benefit of a client.

Why would 2 brokerages choose to co-broker? 
The popularity of Wrap-Ups is one reason. There is no denying Wrap-Ups are a great risk management tool. However, with a Wrap-Up comes the burdensome task of Wrap Administration. 

For a Wrap-Up to be successful administratively, it requires a seamless and supportive approach all the way through from pre-construction, construction, closeout, and post-construction. This requires the broker to have a dedicated Wrap Administration service team ready to help throughout the entire construction project.  

Not every brokerage has dedicated personnel to tackle the daily Wrap Administration duties, such as:

• Wrap-Up Manual Development
• Orientations For Contractors
• Day-To-Day Wrap Administration
• Contractor Enrollment
• Contractor Insurance Credit Evaluations
• Obtain & Renew Insurance Certificates
• Collect & Monitor Contractor Payroll
• Wrap-Up Program Close-Out
• Final Review & Audits

The Wrap Administration team will utilize a Risk Management Information System (RMIS) to help automate and streamline the above duties. In addition, since team members speak to trade contractors daily, it’s critical they are familiar with the variety of risks associated with the construction industry. It’s ideal for the team to be CRIS® certified. A CRIS certification will increase the competence and credibility of any insurance professional who works with contractors.

Without an experienced Wrap Administration team, a brokerage would be challenged to service a Wrap-Up. As such, the broker misses out on the revenue a Wrap-Up can provide. Co-brokering is the answer. It enables a broker to partner with another broker who has an established Wrap Administration team in place. So, one broker can place the insurance coverages while the other broker strictly manages the administration. This partnership allows both brokers to enjoy a new revenue stream from the servicing of a Wrap-Up client.

TSIB has a Co-Broker+ Program specifically for brokers who do not have an established Wrap-Up Administration team. Our goal is to help add additional revenue to your firm. 

Interested in learning more about a Co-Broker partnership? Reach out to TSIB today and speak with one of our Co-Broker experts!

TSIB’s Risk Consultants are currently servicing the following locations:
East Coast: New York City, NY; Bergen County, NJ; Fairfield County, CT; Philadelphia, PA
Texas: Austin, San Antonio, Houston, Dallas
California: Orange County, Los Angeles County, Riverside County, San Bernardino County, San Diego County

Image credit: stock.adobe.com/ro/contributor/210716081/n-hiraman