You wouldn’t perform surgery without a doctor, or fight a legal dispute without a lawyer, so why would you buy insurance without a broker?
Most SMEs Across Australia ‘Going it Alone’
Despite the wealth of knowledge and expertise a broker can bring to a small business, according to Vero’s SME Insurance Index [2015], most SMEs across Australia are still going it alone.
Only 44% of SMEs claim to have used a broker to purchase their last insurance policy [Vero SME Insurance Index, 2015]
The study reported that business owners are not using brokers for two main reasons, the desire to do it themselves, and a lack of awareness as to the benefits a broker can bring to the organisation.
The Benefits Of Using a Broker
An insurance broker is skilled in knowing the right questions to ask to find out the risks you have, and then ‘broking the insurance market’ to negotiate with insurers on your behalf to find cost effective, comprehensive cover.
Cut Business Costs
Many business owners are under the illusion that using a broker is expensive, as you are often charged a direct fee to cover their time and expertise in sourcing your policy. However, by using a broker, you are actually more likely to save your business money in the long run.
Your insurance broker will scour the market to get quotes from a number of insurers. In doing so, they will be able to highlight the benefits and discrepancies of each to find the most appropriate, most cost-effective cover for your business. The are also able to apply their knowledge of the industry and leverage their networks and relationships across the insurance market to negotiate a better price on your behalf, which provides more strategic value to your business.
Ensure you Have Appropriate Cover in Place
While standard business packs are readily available online for a variety of trades and businesses, it can be difficult to judge whether these policies will cover your business’ specific risks. In most cases, any shortcomings with the policy will not be discovered until the time of a claim, when it is too late and your business may suffer a significant financial hit.
By applying their knowledge and experience in the sector, your Insurance broker, will ensure:
- you’re not paying for anything you don’t need
- you’re not paying for expensive overlaps across policies, and
- you’re covered for everything you do need
Fully Protect Your Business
Your insurance broker doesn’t work for the insurance companies, they work for you and are invested in the ongoing success of your business. They will advise you on the best practice for managing your business’s risks and recommend ways to reduce or eliminate them where possible. They will also be there for you in the event that you need to make a claim, ensuring that you reach the best possible settlement under the policy you have taken out so that you can focus on getting your business back on track.
Your broker will be there for your business in the long term. They will work closely with your business to understand future plans, the associated risks and how you like to do business, in order to continue sourcing solutions that work for you and your business.
Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.
The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.
