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What Does a Business Insurance Broker Do?

As a business owner, you have a lot on your plate. You have to wear many hats and juggle a million different tasks every day. 

One of the most important—and oftentimes overlooked—aspects of running a business is making sure that you have the right insurance in place. 

That's where a business insurance broker comes in. But what exactly does a business insurance broker do? Read on to find out.


So, what does a business insurance broker actually do?
A business insurance broker is someone who helps companies find the right insurance policies to protect their businesses.

Insurance can be very complex, and there are many different types of policies available. 

It can be difficult to understand all of the options and determine which type of coverage is right for your business. 


A broker will take the time to learn about your business, understand your needs, and then shop around for the best policies at the best prices. 

Business insurance brokers are not affiliated with any one particular insurance company. 

This means that they can offer impartial advice and help you find the policy that's right for you. They'll also be there to help you navigate the claims process if you ever need to make a claim


The 4 Most Common Types of Commercial Insurance

There are many different types of commercial business insurance, but some are more common than others. 

Here are the four most common types of commercial insurance we come across and what they cover:

1. Property Insurance

Commercial property insurance is a type of insurance policy that helps protect businesses in the event that their property is damaged or destroyed. 

This can include damage caused by fires, natural disasters, vandalism, or theft. 

Commercial property insurance can help cover the cost of repairs or replacement of your property, as well as any business interruption costs incurred as a result of the damage. 

Do I Need Commercial Property Insurance? 
The short answer is yes! If you own a business, commercial property insurance is a wise investment. 

It can protect you from a variety of risks, including fire, theft, vandalism, and weather-related damage. 

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.

Purchase up to six products under one Business Insurance Package. 

It can protect you from a variety of risks, including fire, theft, vandalism, and weather-related damage. 


2. Liability Insurance

Liability insurance can help cover the cost of damages or injuries that occur as a result of your business operations. 

This can include things like medical expenses, legal fees, and property damage. 

How Much Does Liability Insurance Cost? 
The cost of liability insurance will vary depending on a number of factors, including the size and scope of your business, the nature of your operations, and the amount of coverage you need.

However, this type of insurance is typically very affordable, especially when you consider the peace of mind it can provide. 


3. Business Interruption Insurance

Business interruption insurance is a type of coverage that can help your business recover from a loss of income due to a covered event. 

This type of coverage can be used to help pay for expenses like rent or payroll while your business is closed or unable to operate at full capacity. 

Do I Need business interruption Insurance? 
Business interruption insurance is not required, but it is something that every business owner should consider. 

If your business is forced to close its doors, even for a short period of time, the financial losses can be significant. 

Business interruption insurance can help you minimise the financial impact and get your business back up and running as quickly as possible. 


4. Commercial Vehicle Insurance

Commercial vehicle insurance is a type of insurance that covers vehicles used for business purposes. 

That includes everything from cars and trucks to vans and buses. This can include single vehicles and fleets of vehicles. 

If your business owns or leases any type of vehicle, you may need to have commercial vehicle insurance. 

Do I Need commercial vehicle insurance?
There are a few reasons why commercial vehicle insurance is important for businesses. 

It is an excellent risk elimination, or mitigation strategy; simply put - it protects your business in the event of an accident. 

If one of your employees gets into an accident while driving a company car, commercial vehicle insurance will help cover the cost of any damages or injuries. 

Having commercial vehicle insurance shows that you're a responsible business owner who takes the safety of their employees and customers seriously. 


How do I Shop for an Insurance Broker?

Great question! As a business owner, you know that having the right insurance is critical to protecting your business. But with so many options out there, how do you know which insurance broker is right for you? 

Here are a few key factors to keep in mind when shopping for an insurance broker:

1. Expertise

When it comes to something as important as insuring your business, you want to make sure you're working with a broker who knows their stuff. 

Ask about the broker's experience and areas of expertise. 

- How long have they been in the business? 

- What kind of businesses do they usually work with? 

Make sure they have a good understanding of the unique risks and challenges your business faces.

2. Cost

Of course, you'll want to get a sense of how much it will cost to work with a particular broker. 

- Ask about their fees and commissions, and compare them with other brokers you're considering. 

- Be sure to also ask about any discounts or other ways to save money on your premium.

An example here is finding out about overall risk management plans e.g. having an internal risk policy that eliminates or mitigates risks. 

Some insurers will consider this and provide a discount when quoting for your premium.

3. Service

When it comes to your business, you deserve the best service possible. Ask the broker about what the overall service includes. Some example questions include:

- Do they help lodge and manage your claim when required? 

- Do they provide annual reviews of your overall risk management strategy and insurances?

- Do they provide continuous insights into your industry for all things risk?

- How quickly do they return phone calls and emails?

You should feel confident that your broker will be there for you when you need them most.

4. Accessibility

In today's busy world, it's more important than ever to be able to access your insurance broker when it's convenient for you. 

- Ask about the broker's communication preferences and find out how they prefer to be contacted (email, phone, text, etc.). 

- You should also ask about their availability—are they prompt in returning calls and emails? Do they offer extended hours or weekend hours?


Summarising this up
Having the right insurance broker is an important decision for any business. 

By keeping the above factors in mind, you can be sure to choose a broker who will have your best interests at heart and who will help you get the coverage you need, aligned to your overall risk management strategy.


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.


Ensura Brokers, ABN 22 652 716 964, AFSL 478959

This article originally appeared on Ensura Brokers and has been published here with permission.

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