You can buy insurance from just about anywhere. And in todays’ tech-driven world, it’s easy to go online, grab a quick quote or just go with a big household name.
So why use a broker? Can you trust a broker? And does it really matter if your broker is independent?
Here are five things your insurance broker might not be telling you and a stack of tips to give you clarity and confidence about choosing the right insurer.
1. Insurance is tedious, complex and confusing
Insurance isn’t something you want to think about or spend time and money on. And no amount of fancy ad campaigns can change that. But, having a broker that cares about you and your business can at least make the whole process less tedious. And the more your broker knows about your business, the better they can advise you and the less risk you take. So although insurance feels tedious, it is worth taking the time to find a broker that’s a good fit for you; someone who is good at finding out what you need and doing the leg work to make sure you get it.
2. You don’t know what you don’t know
There are lots of ‘unknown unknowns’ when it comes to insurance. Which means you don’t necessarily know if you’re underinsured or not. You might not know what risks you need to cover. And you don’t know if you’re paying for excessive premiums for cover you’ll never need.
Standard insurance policies will likely cover you for the most common risks and will be suitable for some businesses. But every business is different. And without asking the right questions and spending the time to really understand how your business operates, you can’t be fully satisfied that you’re properly protected.
It’s a broker’s job to get to know you fully so they understand your risks and exposures, and present them in the best possible light to insurers. Using a Chartered Broker will give you peace of mind and reassurance that your insurance policy will respond when you need it to.
3. Being independent means it’s about YOU
Lots of insurance brokers are tied to particular brands and products meaning they’re not objective, they don’t have access to the full market and may be influenced by sales targets or quotas. Which means the insurance products they recommend are not necessarily the right fit for your business.
On the other hand, an independent broker can recommend policies from a wide network of insurers since they’re not tied to any one particular insurance company. So you’ll get a more objective and competitive insurance policy that benefits you, not the broker.
4. Being chartered is more than a fancy logo
The word chartered gets banded about a lot. But what does it actually mean? In a nutshell, it’s a mark of trust. For an insurance broker to be chartered, they have to commit to (and be measured against) an ongoing set of standards. Which means somebody outside the organisation is saying you can trust that broker and is holding the broker accountable for the way they do business. For absolute peace of mind, I’d always recommend looking for a Chartered Broker symbolised by the Chartered crest. You can also check the Chartered Directory on the Chartered Insurance Institute (CII) website.
5. Claims are just as important as the insurance
You’d be forgiven for thinking that insurance companies only care about selling insurance, hoping that no-one ever makes a claim. But a good insurance broker should offer ongoing support throughout the term of your policy. And a great broker will help you make a claim and hold your hand throughout the claims process. They’ll ask you the right questions, and review and adjust your policies if anything changes. More importantly, your broker should be proactive – thinking about changes before they happen.