5 Mistakes Small Businesses Make When Picking a Benefits Broker (And How to Dodge Them)
Picking a benefits broker might not be the most thrilling part of running a business — but it’s a big deal. The right partner can help you offer awesome coverage, save serious money, and make your life way easier. The wrong one? Well… you might end up stuck with cookie-cutter plans and a whole lot of frustration.
At JAM Benefits, we work with growing teams every day — and we’ve seen the same broker mistakes pop up again and again. So let’s break ‘em down (no judgment!) and talk about how to avoid them.
Going with someone who’s just there to “sell” 🤑
The mistake:
Some brokers show up with a stack of quotes, throw a few acronyms your way, and call it a day. No real advice. No game plan. Just vibes.
💬 “If your broker’s only move is sending quotes, you don’t have a partner — you’ve got a middleman.”
What to do instead:
Look for a broker who acts more like a benefits strategist. Someone who’ll ask smart questions, explain your options in plain English, and help you build a plan that actually fits your team.
Assuming bigger is better 🏢❌
The mistake:
It’s easy to think a big-name national firm must be the safest bet. But small businesses often get passed off to junior reps or handed a one-size-fits-all solution.
💬 “Just because a firm has a national logo doesn’t mean they understand your local needs.”
What to do instead:
Find a broker who works with small and mid-sized teams — not around them. You’ll get more attention, more flexibility, and someone who actually picks up the phone when you call.
Never asking how they make money 💰🤔
The mistake:
Most brokers get paid by the insurance companies. Not shady by default, but if your broker earns more when you pay more… that can be a red flag.
💬 “Transparency isn’t optional — it’s step one in a trustworthy relationship.”
What to do instead:
Ask the question: “How are you compensated?” (It’s totally fair game.) We’re always up front about it at JAM. No weirdness. No hidden agendas.
Sticking with the same old plans 😴
The mistake:
Traditional group health plans aren’t the only way. But a lot of brokers don’t mention alternatives — or don’t understand them well enough to recommend something different.
💬 “If your benefits plan hasn’t changed in years, chances are your needs have — and your broker hasn’t noticed.”
What to do instead:
Ask your broker about newer models like ICHRA, level-funded plans, or other ways to customize your approach. If they give you a blank stare… that tells you everything.
Only hearing from them once a year 🐢📞
The mistake:
Some brokers disappear until renewal time. No check-ins, no updates, no “hey, here’s a better option we found.”
💬 “If your broker only calls when something’s due, they’re not managing your benefits — they’re babysitting them.”
What to do instead:
Work with someone who’s in your corner year-round — not just when paperwork’s due. Benefits don’t stop in Q4, and your broker shouldn’t either.
Real talk: You deserve better. 🎯
Choosing a benefits broker shouldn’t feel like flipping a coin. You deserve a partner who’s proactive, transparent, and actually fun to work with (yes, insurance can be fun — we promise).
💬 “Great benefits aren’t just for big companies — they’re for smart ones.”
That’s what we do at JAM Benefits. No jargon. No pushy sales stuff. Just smart, modern benefits built for growing businesses like yours
Ready to see what working with a better broker feels like?
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