It also means you may have several links in the chain to check out. It's one thing to deal direct with a carrier. However, if you do program business with a wholesaler who goes through a managing general agent to a carrier, you need to check them all out, as to reputation, and also to find out what functions each one has. It's even possible one player does nothing at all. As you might imagine, in today's cost-conscious world, that arrangement is hard to obtain.
Associations are a fertile ground for agencies seeking to develop program business.
Many associations have entered into contractual arrangements with agencies or carriers, while others have started their own captive agencies. The easiest program is the one sold in a limited geographical area with just one policy form. However, complexities grow quickly. Some buyers want endorsements, while others may not qualify or be suited for the form used. Still others, if the program offers general liability coverage, will be seeking entirely different coverages such as workers compensation or professional liability.