Australian businesses better off using brokers for their insurance

Brad Buzzard 30 May 2018 NEWS

New research from Vero Insurance shows that brokers offer a better claims experience than going direct.

Better service could be behind an uptick in the percentage of small and medium-sized businesses (SMEs) using brokers for their insurance, according to a new survey by Vero Insurance.

While only 37% used a broker in 2017, it represents the first year-on-year increase after three straight years of decline. The survey suggests better service could be the cause.

According to the survey, businesses who buy their insurance through a broker are twice as likely to be fully covered for losses as those who buy directly from an insurer. Nearly 23% of those who used a broker had their claims fully met, compared to only 10% of those going direct.

Those who use brokers are also more likely to be satisfied with their insurance, with 62% feeling satisfied compared to 57% for those going directly through an insurer.

"This is clear evidence of the benefit that brokers can bring to their clients, suggesting that when SMEs receive expert guidance on their insurance, they are far more likely to be adequately covered," the report states.

Getting the right business insurance can be a complex undertaking, with dozens of different types of cover to choose from. An insurance company is just as capable as a broker in guiding small businesses through the process of finding the right cover, but with a broker, businesses only have to go through the process once. The broker can then speak to multiple insurers for the best deal. They can also take away a lot of the hassle of negotiating claims.

Ready to compare?

Get quotes online Speak to a broker

Receive business insurance quotes from a qualified broker

If you are ready to speak with a consultant about different business insurance options available, simply enter your details in the form. Keep reading if you want to learn more about the different types of cover available.
FBI Lender Logos

Business insurance feed

Picture: Shutterstock

Get more from Finder

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Ask a question
Go to site