Finding the right level of insurance cover can be a time-consuming, complicated and expensive task.
If you’re keen to find an alternative solution, looking for something unusual, are involved in multiple activities, or you’re unsure of the level of cover required, engaging the services of an insurance broker is almost certainly right for you. The extra peace of mind that obtaining insurance via an objective professional can provide, will enable you to concentrate on your business.
Insurance is based on contract and law, and, in the same way a solicitor or accountant would, an insurance broker provides advice and explains clearly what your insurance covers, and, crucially, what it does not cover. It’s important to note that they should be authorised and regulated by the Financial Services Authority (FCA), meaning they have a legal duty of care in the advice they provide and products that they recommend. Independent brokers are not tied to any one insurer, so have the freedom to source suitable products and services across the available market.
Reasons to use an insurance broker
Here are our ten reasons why you should use an insurance broker:
- Impartial advice with access and advice on a range products and insurers - Some brokers will have their own negotiated products or enhanced covers, limits and other features and benefits, in addition to the insurer's main policy. That way, a broker can tailor your insurance to meet your specific requirements.
- Help if you don’t know exactly what you need - A broker can use their expert knowledge to highlight areas of cover that may not be considered, such as cyber, environmental or trade credit insurance, or alternative flood cover options.
- Plain English - It’s important that you have help to cut through the insurance jargon, which can unfortunately be plentiful in long and complex policy wordings. A broker is responsible for ensuring you have a clear understanding of the level of cover being offered, including any optional extras, and also where cover is not included within your policy
- Understanding and presenting your risk - A broker can ensure your business and associated risks are presented to insurers in the correct way, enabling them to offer the appropriate terms.
- Risk management and adequate protection – Brokers can help to identify areas of improvement or mitigation and introducing specialist partners or access to insurer services that best support, which can also include negotiated risk management bursaries from insurers. They can also arrange for experts to advise on sums insured and limits, as well as business interruption periods and supply chain disruption, to avoid the dangers of underinsurance and gaps in cover, whilst also ensuring you aren’t paying for unnecessary cover.
- Selecting the right insurer – A good broker will know which insurer(s) have the knowledge and expertise to be able to provide the cover that you need. This is vital when it comes to making a claim, as the understanding that the insurer and broker have of the policy, and the risks that are insured under it, make the process of settlement of valid claims much easier.
- Price and flexible payment options – You might assume that engaging the services of a broker will result in you paying more for your insurance. In reality, insurers may actually provide lower rates to brokers, due to the fact that business through a professional broker, and the value they add with expert advice and support, is a lower risk for insurers. Also, with cover specific to your requirements, you will only pay for what you need. Most brokers can also offer a number of payment options including direct debit instalments through premium finance providers at a variety of instalment periods.
- Tailored communication – A broker will be flexible on how you want to be contacted – whether that’s the frequency or method (face-to-face, telephone, video, email and more).
- Access to advice and service - After a policy is sold, a good broker will continue performing valuable day-to-day services, monitoring the adequacy of coverage limits and policy terms as market conditions fluctuate.
- Claims support and advocacy - A broker can provide valuable advice and guidance as to whether you should notify a claim or circumstance to insurers. In the event of a claim and your time of need, a broker can be an integral part of incident response and will provide support to achieve a fair settlement.
When it comes to protecting your livelihood, our advice is to entrust it to a broker. Not just for their expertise, advice, access to the right insurers, and the support that they can provide, but also for the peace of mind and reassurance it will give you.
Business insurance from Towergate
At Towergate we don’t just offer traditional insurance broking: we believe that prevention is better than cure. That is why we have our own risk management consultancy focusing on pre-loss mitigation and business continuity, and have developed our own business interruption calculator.
We engage actively with insurers and our clients to obtain protection for businesses of all sizes. Our wide range of covers help protect your organisation should the worst happen.
We are passionate about tackling the unprecedented levels of underinsurance in the UK: watch our video on how to avoid this for your business
About the author
Mark Brannon Cert CII is a respected industry leader with over 17 years’ industry experience in a variety of roles within the business insurance sector. He works across a wide spectrum of insurance product and policy development, delivery and optimisation for clients, including claims, insurer relationships, marketing and communications, and risk management.
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The information contained in this bulletin is based on sources that we believe are reliable and should be understood as general risk management and insurance information only. It is not intended to be taken as advice with respect to any specific or individual situation and cannot be relied upon as such. If you wish to discuss your specific requirements, please do not hesitate to contact your usual Towergate Insurance Brokers adviser.