In my line of work, I often meet with people who don’t quite understand what an Insurance Broker does, why we exist, and crucially, why someone should use a broker and not just go to the insurance company direct.
In this blog I’m going to share with you just a few things that should answer some of these questions, and hopefully dispel a myth or two along the way! So here goes:
1. In the simplest form, an insurance broker acts as an intermediary between the policyholder and the insurer. In practise, this means that they will source quotations on your behalf from one or more insurers, based on what you have told them about yourself or your business.
2. Many business insurers will only deal with a broker, and in these cases going direct is not an option.
3. ”Brokers are always more expensive because they have to take their cut” – wrong.
It’s a common misconception that premiums are higher when you use a broker because of their earnings. In fact, some of the best prices can only be obtained through a broker. Similarly, some of the best covers and policies are not available if you go direct.
4. A good insurance broker will have their own insurance, so if anything goes wrong and its their fault, they have insurance to cover them. This provides you with added protection.
5. A good broker will also deal with your claim for you, leaving you to get on with what you do best.
6. As brokers are sourcing policies for individuals and businesses all the time, their buying power is far greater than any one individual or business. Therefore, if there is ever a debate as to whether a claim should be paid, or a discussion to be had in terms of premium negotiation, a broker is far more likely to achieve a favorable outcome in view of their relationships with the insurers.
7. A good broker will have several years’ experience and expertise behind them and be able to identify areas of concern that you might never have considered. They will also be abreast of changes within the industry and other significant changes such as new legislation, policies or needs for specialist covers.
These are just a few points to illustrate what we do, how we do it, and more importantly, why you should consider using us in the first place!