Why use an insurance broker?
This is a question that I am asked often as an insurance broker, along with "what do you do?" People wonder, are brokers just there to get the Insurer's commission regardless of the client's needs? My answer to this is simple - as a professional broker I am here to serve my clients, I want to understand every aspect of your business and develop a program that fits your needs and budget. Above all, I want to make sure that my clients are comfortable with the cover they have taken, the risks that they are willing to take on themselves and to ensure that the overall process is as simple as possible.
It's all about trust and assurance
At the end of the day, you only receive a piece of paper. You have to trust my ability as a broker to determine that a particular policy will fit your needs and ensure you are not left exposed in the event of claim. One of my main roles is to ensure that if an unfortunate incident occurs that your claims process is as smooth as possible and you are back to the same position prior to the loss. Our main role as brokers is to be an advocate for our clients and deal with all the technical aspects of insurance so that our clients can get on with running their businesses safe in the knowledge that their insurance needs are covered.
Insurance is complex so a broker ensures you're properly covered
Insurance can be complex - with endorsements, conditions and exclusions that unless you are aware of all the differences and products that are available in the market you can get caught out quite easily and take out a policy that does not meet your needs. The end result of this could be that in the event of a claim, your claims are declined and you have paid out premiums for nothing. I look at it in the same way as my taxes - I can do them myself online but I would prefer to involve a tax professional to do them for me. This ensures I haven't missed anything and I know that I can ask them questions about the process and they have my best interests at heart and will make sure I receive the maximum return based on my individual circumstances.
The difference between brokers and agents
There is a difference between brokers and agents as follows: Brokers work for the clients and are not employed directly by any one Insurer. Our job is to ensure that the client receives the best cover at an affordable price regardless of Insurer chosen. We also determine if the Insurer is reputable and the likelihood of claims being paid. Agents work directly for one Insurer; they will not approach any other Insurer for quotations and it is questionable if your policy will be tailored to your specific needs. For example Elders is owned and underwritten solely by QBE and Wesfarmers is owned and underwritten solely by IAG (CGU).
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Clare Smith.