As a dental insurance broker, you may be all too aware of the narrow profit margin on which you operate monthly. And when commission payments are slow in coming, this can cause many unnecessary problems for your bottom line. Since insurance carriers often have different guidelines for payment processing, what can you do to ensure that you get your commissions paid quickly?

Here are some basic tips for quick payment turn-around times:

1)  Set up your initial information correctly.

When you first begin to collaborate with a new carrier, be certain to fill out all applications and brokerage agreements correctly. Check and double-check your tax forms to ensure the information is current and correct. As you must comply with any company and/or state licensing requirements, ask your sales representative within the insurance company to provide you with a checklist of current requirements. The same goes for the various appointment requirements within each insurance company. Do not leave this major step to chance, as problems in your initial set-up with a carrier can delay future commission payments indefinitely.

2)  Work the application process to your benefit.

Once your personal paperwork is set up, it is time to turn your attention to your client's paperwork. As you process applications, be diligent in being thorough throughout the entire form. Incomplete forms translate directly into stalled compensation at corporate headquarters. 

3)  Hit all the bases.

The best business practice involves staying up-to-date with all compensation request forms needed by your insurance carriers. Forms change, and many times the carrier neglects to notify brokers of new forms, formats, and payment processes. Making sure that you maintain up-to-date forms will alleviate this problem. Fill out compensation forms carefully. Also, for most carriers, you must be certain that you are listed as the broker of record on employer applications. This seems basic, but insurance carriers report that lack of this information is often the culprit in delayed payments.

4)  Choose the easiest payment method for the carrier.

Though some brokers prefer to receive paper checks for commission payments, often insurance companies prefer direct deposit. Unless there is compelling reason to insist on paper, complying with your carrier's request to process your payments by direct deposit can speed your payments substantially. If you choose the direct deposit method, be sure to fill out the needed information from the carrier carefully. Mistakes in this area are often difficult to correct. Once again, check and double-check the direct deposit form you provide to the carrier.

5)  Maintain a dialogue.

Perhaps the most important thing you can do to make sure your commissions are paid in a timely manner is to maintain constant, constructive communication with your sales representative within the insurance carrier's organization. Developing a professional relationship with someone in-house eases the way if any problems do develop. A good relationship with your assigned representative will make it much more likely that you will be aware of what is happening internally with your carrier. You will be aware of any policy changes regarding payments or forms needed to apply for them.

Following these tips will go a long way to ensure that your carrier will process commission payments for you in a timely manner, contributing to the financial health of your business in both the short- and long-term.