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Why should I use an insurance broker for my business insurance?
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Why should I use an insurance broker for my business insurance?
Running a small business is quite challenging and there are a lot of different things you need to worry about. As a result, many small businesses outsource or partner with specialists such as accountants, IT consultants, employee recruitment agencies, marketing companies etc. With so many things to attend to, it’s easy to overlook the importance of insurance and just not think about the risks that can damage your business. An insurance broker will get to know your business and then use their knowledge of the insurance market to source the best solutions for your insurance needs and then act as an advocate for your business at claim time.
Here are 5 reasons every business should use an insurance broker:
1. Knowledge and expertise
A broker has the knowledge and expertise to assess your business insurance needs and navigate the complex world of insurance to obtain the best solutions. This involves trawling through and comparing complex policy wordings, and using their connections with underwriters and business development managers at the insurance companies to obtain the most appropriate cover for your business at the best price on the market. Brokers are industry professionals. They are required to hold industry recognised qualifications and to maintain a minimum number of hours of Continuous Professional Development each year to keep on top of the ever-changing insurance world.
2. Long-term business adviser
A broker will maintain an ongoing relationship with you so that when the insurance needs of your business change, they can update your insurance where required. A broker will also advise you of good business practices to minimise or mitigate your risk, which can help to reduce your insurance premiums. Also, the insurance world is ever-changing, which can lead to more appropriate, additional or less expensive insurance products on the market that can more effectively cover your business.
3. Represent you, not the insurer
Insurance brokers work for you and will always act in your best interests. While interacting with underwriters and business development managers at insurance companies, there is a clear understanding that insurance brokers are representing their clients and that there are no allegiances with any particular insurance company. Brokers compare insurance products across different insurers to find the most appropriate policy for their clients at the best possible price.
4. Your advocate at claim time
Claims are where ‘the rubber meets the road’ for the insurance contract between clients and the insurers. The role of insurance brokers is to liaise between the client and the insurer to make sure the insurer has the correct information to assess the claim. This is important as there is a potential for incorrect information to lead to poor claim outcomes for the client. There is also the potential for the claims assessors, claims handlers and other people from insurance companies to make mistakes and in these instances insurance brokers will advocate for their clients with the backing of their brokerages (e.g. Community Broker Network), and other bodies (e.g. Steadfast, NIBA) to obtain the best outcomes possible for their clients.
Management Liability insurance is designed to provide protection to both the business and its directors or officers for claims of wrongful acts in the management of the business.
A business insurance pack can provide cover for your business premises and contents, against loss, damage, theft or financial loss from an insured interruption to the business.
Claims are where ‘the rubber meets the road’ for the insurance contract between clients and the insurers. The role of insurance brokers is to liaise between the client and the insurer to make sure the insurer has the correct information to assess the claim. This is important as there is a potential for incorrect information to lead to poor claim outcomes for the client. There is also the potential for the claims assessors, claims handlers and other people from insurance companies to make mistakes and in these instances insurance brokers will advocate for their clients with the backing of their brokerages (e.g. Community Broker Network), and other bodies (e.g. Steadfast, NIBA) to obtain the best outcomes possible for their clients.
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Craig Muldoon
5. Provider of education about risks
It’s important for clients to have a sound understanding of the major risks for their businesses and what their insurance policies cover. However, insurance contracts are legal and complex contracts that include a lot of technical jargon particular for the industry. A major role of insurance brokers is to educate their clients of the risks facing their businesses and to explain the insurance policies to their clients in layman’s terms.
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.
All information above has been provided by the author.
All information above has been provided by the author.
Craig Muldoon, Stress Free Insurance, ABN 68655178377, AFSL Community Broker Network
This article originally appeared on Stress Free Insurance Blog and has been published here with permission.
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