If you need business insurance, there are two options to consider – buy direct from an insurance company or go through a qualified insurance broker.
Both can provide cover. But an insurance broker works for you, not the insurance company, and is there to support the needs of your business.
To maximise benefits, minimise costs and get help understanding the complexities of insurance, many small business owners seek the expertise of a broker. The right one should be transparent, reputable and specialise in your industry.
Here’s why using an insurance broker can benefit your business.
1. Cost and Time Savings
When chosen correctly, broker pricing can be more cost-effective than direct insurance pricing.
This is because brokers are compensated by the insurance company, not the client, and have access to a larger range of prices and coverage options. Insurance companies often lower pricing to brokers since they’re less risk as well. If prices are too high, they’re able to leverage their networks to negotiate a better price on your behalf and bring more value to your business.
A simplified process is also a valuable benefit for small business owners.
Finding the right policy is time consuming. When your focus should be on running a business, comparing quotes and policy options can be looked after more efficiently by an insurance broker. They will review all quotes and providers so coverage isn’t lacking or premiums too high.
2. Knows Your Business
The right insurance broker must understand your industry and needs.
To determine what coverage is right for your business, brokers will conduct a risk assessment and review options for managing liabilities. Their buying power can also be used to customise or design policies for better coverage and savings.
3. To Source Appropriate Cover
Businesses which invest in an insurance broker are twice as likely to be fully covered for losses compared to those who buy direct from an insurer.
Different policies vary in cover. The package that works for one business might not be suitable for yours. Through a broker, there’s peace of mind you’re adequately insured against all reasonable liabilities which may apply to your business. A broker will clearly explain your policy so you have a full understanding of the level of cover being offered.
4. Advice and Management Expertise
After getting to know your business, a broker can advise you on the best insurance solutions and help implement a risk mitigation plan.
If you’re in a niche industry, it’s important to choose a specialist provider. Many comparison sites don’t provide cover for specialised needs, such as critical illness or bespoke options. However, an insurance broker can assist with the finer details such as:
- A detailed comparison of providers, policies and cover
- Terms and conditions (and what they actually mean)
- Current insurance markets and prices
- Pitfalls to avoid
5. To Keep Policies Up-to-Date
It can be complex navigating through different insurance policies if it’s not your expertise.
Engaging with an insurance broker assists in managing the process, helping to ensure policies are updated and your business is covered for any unexpected incidents.
6. For Claims Assistance
Insurance brokers offer a long-term solution that doesn’t stop after you sign your policy.
To avoid time away from everyday business activities, a broker can simplify the claims process. If you need to make a claim, they can help fill out the forms and advocate on your business’s behalf.
Some policy types may have time limits for claim lodgement. Brokers can speed up the claims process, determine whether the settlement is a fair amount and minimise potential mistakes.
Insurance brokers are an important part of the business puzzle and can help you make the most of your budget and cover.
About the Author
Founder of Toward Music, Jayde Ferguson Walker is a music enthusiast and scripturient with a consuming passion to write. With 15+ years’ experience in the local music industry as a music journalist, Jayde also writes in the business, travel and home improvement industries. You can catch her on LinkedIn.