Business owners today are all too often bombarded with amusing TV commercials, eye-catching billboards, and witty radio announcements from insurance companies making promises that they’ll save on insurance rates by going direct. With all the hype of going direct, it’s easy to overlook the value that an insurance broker can bring to your business.
The Difference Between Buying Direct and Using a Broker
A direct insurance writer is a company that provides cover directly through its own employees, the mail, or the Internet, while an insurance broker is an insurance professional who knows the insurance market and can access the insurance policies of multiple companies. Simply put, an insurance agent acts as the middleman in the insurance market to negotiate the most appropriate and cost-effective insurance solutions for their clients.
There are several reasons for businesses to consider using an insurance broker as opposed to going direct.
1. They Do the Hard Work for You
Your insurance broker will scour the insurance markets on your behalf to ensure you have not only the most cost-effective cover in place, but the also that the cover provides the best protection for your business based on your specific needs. All you have to do is provide them with necessary information, and they’ll take it from there.
2. They Make Insurance Simple
With access to multiple insurance markets, you can typically secure coverage for whatever you may need through your broker. This means you only need to have one contact for all of your insurance policies even though the covers may be sourced from different insurance companies. Furthermore, as your insurance needs change your broker can ensure your policies are updated accordingly, even if they have to access a different market or switch your policy from one insurer to another.
3. They Ensure Your Business is Protected
Each insurance company will have slightly different inclusions and exclusions in each policy. So sourcing the right cover for your business isn’t just about knowing what insurance cover you need to buy, but you also have to understand the little differences between each company to make sure you are adequately protected.
4. They Give you Peace of Mind
The insurance market is complicated and can be difficult to navigate. If you buy online, you can’t always be 100% sure that you’re getting the right cover for your business. An insurance broker will take time to understand your business so that they can recommend in the policy that’s best for you. Your broker is also there long after sourcing the policy and will be able to answer any coverage questions or in the event that you need to report a claim.
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.
