Why would you bother using a business insurance broker when you can easily buy cover yourself direct from the insurer? A recent study found that people who buy with a broker are more likely to be covered in the event of a claim.
There are several other reasons, including:
Insurance brokers can help businesses across an extensive range of industries, including:
If you think an insurance broker could help you find the business insurance you need, you can search for a qualified broker at the National Insurance Brokers Association website. You can also find out more about how to compare brokers in our handy guide.
It doesn’t matter if you’re running the corner store or a Fortune 500 Company, all business involves a certain amount of risk, which is why there is a range of business insurance options available. These options include:
Learn more about the different business insurance plans available in Australia
A business insurance broker is an insurance expert who can help you find the right cover for your business. When you meet with a broker, they will first sit down and take the time to understand how your business works, the risks involved, and how you can find protection against those risks.
Once they know your business, your broker can then help you tailor a business insurance package to suit your requirements. A broker will help you understand the features of different policies, answer any questions you may have, and negotiate the best deal and customise cover on your behalf.
There’s a common misconception that brokers work for insurance companies. While they do partner with insurers, the reality is that they have a responsibility to help you find insurance that matches your cover needs. In other words, they work in your best interests to protect your business.
Brokers have expert knowledge and a number of tools at their disposal to help make the process of finding business insurance much easier. This can help save you a whole lot of time, money and stress, freeing up your time to allow you to concentrate simply on running your business.
Insurance brokers are professionally trained and possess expert knowledge about all the traps and pitfalls of business insurance. They will take the time to understand just how your business works, as well as the range of risks you are exposed to. They can then use their experience and contacts in the industry to help you choose the right policy.
A good broker can take you through the ins and outs of individual policies, as well as give you access to a broad range of insurance providers. If you ever have to make a claim, having a broker on hand to take care of matters for you can greatly reduce the amount of stress involved.
In order to find the right broker for your situation, you could consider asking for proposals or expressions of interest from potential brokers. This can help you understand each broker’s qualifications, determine whether they are registered with ASIC and any trade associations and ascertain your point of contact with a company.
This is also a good way to gain information about the type of clients and the industries each broker usually works with, as well as the services they provide and if they have any experience with businesses similar to yours. Discovering how much they will charge you for their services is another important step.
Before you choose a broker, try to determine how compatible each broker will be with your business and whether or not you think they will be fully committed to getting you a tailored deal.
The National Insurance Broking Association (NIBA) offers a service to help individuals and businesses find the right broker for their needs. Visit the NIBA find a broker website for more information.
There are a number of advantages and disadvantages to choosing a broker over a direct insurer, so whichever option you select will be based on the specific needs of your business.
The main advantage of dealing with a broker is that you have an expert on hand to help you find the right type and level of insurance cover. The specialised knowledge, years of experience and understanding of the industry as a whole that brokers can offer combine to make one very attractive package. Brokers can also offer you access to products from a wide range of insurers, meaning you have greater choice than if you buy direct.
Interestingly, insurance bought under advisement usually turns out to be cheaper than products purchased direct. This is because buying insurance through a broker allows you to tailor cover to your needs (so you don’t pay for things you don’t need), while direct policies are sold on more of a ‘one size fits all’ basis.
The main strength of direct life insurers, on the other hand, is convenience. It’s quick and easy to compare multiple quotes and policies online and policies are generally designed to be more simple and straightforward to allow easier understanding.
Of course, the downside of going with a direct insurer rather than buying cover with advice is that you simply end up with an inappropriate level of cover in place. This is the main reason why, even with the growth of the direct insurance market, brokers remain popular with those seeking business insurance.
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