Why your small business needs an insurance broker
What are the benefits of having an insurance broker?
Times they are a-changin' and right now business owners across Australia agree with Bob Dylan. With the unknown ahead, business owners are looking for better ways to safeguard their future. One of the ways of achieving this is by getting value for money when it comes to understanding the benefits of having an insurance broker.
In March 2020, there was a spike for searches in business insurance during the Coronavirus pandemic. From what we know about uncertainty is that people are looking for security and reassurance.
Google Trends show an increase in searches for business insurance
Unsurprisingly, more business owners are now considering having an insurance broker as a part of their professional advisory team. By understanding the benefits that Insurance Brokers provide, this helps give them the security they are seeking. So it’s now time for accountants and lawyers to make room for insurance brokers in the business owners suite of guides.
Benefits of an insurance broker (Infographic)
Having an insurance broker on your side can add value to your business
What is a business insurance broker?
You may have heard the term “Broker” before, and they are commonly used in the financial services industry. You may have used a mortgage broker to help finance your home or had a business broker to handle the sales process when you purchased a business.
A business insurance broker is there to help businesses when it comes to their insurance needs. This includes recommending different types of policies, comparing insurance covers, purchasing policies and renewals, handling the claims management process and advising on risk management.
They do the hard work for you, helping you save time
We understand that insurance may not be the most thrilling task in your business (plus ain’t nobody got time for that), so why do it yourself when you can get a professional to do it for you?
Insurance brokers do more than comparing different policies they assess potential risks to your business and recommend appropriate covers to help protect your livelihood. They also make sure you’re not underinsured, just in case you do make a claim. And did you know that insurance brokers do the whole claims process for you? So when the time comes for your annual renewal, they will reassess your coverage and make sure you’re getting the best deals out there.
So no more sweating the small stuff.
They will get you the right cover to fit your needs
As the saying goes “you get what you paid for” and this certainly applies to insurance. Once an insurance broker has an understanding of your business, they then make sure you're protected for potential risks by looking at industry trends and existing risks.
Be wary, as a good broker will not use shortcuts to get the lowest price. If you feel that your insurance policy is too good to be true, then it probably is.
Our top tip, be as honest and proactive as you can. Let your broker know of any significant changes or investments assets, so you don’t get caught out with underinsurance.
You’re their first priority
A broker works for the client, not the insurer.
They act in the best interest of you, the client, and they achieve this by “changing shoes”. What does that mean?
A quality broker places themselves in the client’s shoes to make sure that their needs are being met as a top priority. Here at Macey Insurance Brokers, we like to regularly check in with a client to see if there needed extra help after an extreme weather event to providing regular updates during the submission of a claim.
It’s important to note that brokers do also maintain a relationship with insurers to help facilitate the insurance process. However, it is essential to remember that brokers work for their clients, not the insurer.
They will translate the fine print
Yes, there will always be fine print when it comes to insurance. By having a broker go through the fine print with you, they’ll explain the nitty-gritty details that will give you the peace of mind that you confidently know your policy.
Plus it is also an excellent opportunity to ask your broker those burning questions like explaining technical terms and definitions that you might not be familiar with or what may be considered exclusions on the policy.
Can’t I just DIY my insurance?
Of course! When it comes to insuring your business, some choose to do-it-themselves, as it may save them some money. However, this can lead to disastrous outcomes (trust us, we’ve heard of some unfortunate situations).
There are several questions to ask yourself before you DIY:
- Do you know how to audit potential risks to your business accurately?
- Do you know what type of insurance(s) you need?
- Will you truthfully declare the correct insurance amount as you could be at risk of underinsurance?
- Do you have an understanding of the claims management process and the commitment required for it? (Claims can take months to process, and the outcome cannot be guaranteed)
- Will you be responsible for comparing and assessing different policies on an annual basis so you can get the best cover every time?
If you’re not confident in answering these questions, we recommended that you speak to a broker, so you’re not risking your business’ future.
As you can see, business insurance brokers not only provide value for money, but they also help save you time by making sure you have adequate cover if an unexpected scenario arises. The benefits of having an insurance broker outweigh not having one and having an insurance broker as a part of your advisory team will provide you the defence strategies you need in business and give you the relief knowing that you’re prepared for the unexpected.
If you would like to speak to a broker, contact Brendan Goddard today.
This article originally appeared on Brokers' Blog, Macey Insurance Brokers and has been published here with permission.
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Brendan Goddard.