This year’s Vero SME Insurance Index has found the number of small businesses using brokers has dropped this year to just 44%. The report attributes this decline to the increasing use of technology and digital platforms, where more and more companies are offering easy access to business insurance policies.
Price-conscious business owners believe that by going direct to the provider, they will get the most cost effective insurance solution. However this is most often not the case. A trusted adviser can add value to your business that extends far beyond any initial cost saving you may find online.
Your broker may charge a direct fee to cover their time and expertise in sourcing your policy, however using them is likely to save your business money in the long run.
Not only will your insurance broker obtain quotes appropriate for your business from several insurers, but they will also be able to highlight the benefits and discrepancies of each to find the most cost effective cover. In addition, they are able to leverage their knowledge and networks in the market to negotiate a better price on your behalf, providing more strategic value to your business.
Sourcing Appropriate Cover
Standard Business packs are readily available online for a wide variety of trades and businesses. However it can be difficult to assess whether the specific risks your business is exposed to are covered based on the information provided. Any resultant shortcomings with the policy chosen without expert advice are often not exposed until a claim is made, leaving your business to take the financial hit.
With different policy wording, insurance solutions vary greatly in the cover that they provide. Applying years of training and experience, a good insurance broker can make sense of the policy’s fine print and ensure your cover will withstand in the event of a claim.
Protecting your Business
Insurance brokers are best placed to assess and understand the specific risks of the sector you operate in. They can advise on best practice for managing your business’s risks and recommend ways to reduce or eliminate them where possible.
Many risks that cannot be eliminated can be covered by an insurance policy. Your broker will combine the risk assessment of your business with their in-depth knowledge of insurance policy wordings to find the best solutions to protect your business.
Assisting with Claims
Your relationship with your insurance broker doesn’t end with the purchase of your policy. If you need to make a claim, your insurance broker will help you reach the best possible settlement under the policy you have taken out. This saves the costly and time-consuming process of directly negotiating with your provider and ensures you aren’t losing any money that you should have received with the payout.
A Beneficial Relationship
Remember that your insurance broker doesn’t work for the insurance companies; they work for you and have a vested interest in the ongoing success of your business.
If you decide to employ a broker, you will benefit most if you develop an ongoing business relationship. Your broker should understand your future plans, the associated risks and how you like to do business, in order to continue sourcing the most suitable, most cost-effective cover that works 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.