Reasons To Hire A Business Insurance Broker
When taking business insurance, most people are often conflicted over whether they should apply for the cover individually or engage the services of an insurance broker. The truth is, a business insurance broker brings in their industry expertise as you take the cover. Below are a few reasons why you should hire a broker.
Choosing An Insurer
There are hundreds of insurance companies in Australia. Since they all operate under the confines of the law, it would be difficult for you to conduct a comparative analysis of the various products offered by these companies. Your insurance broker has insider knowledge that enables them to establish the specialisation of the various companies. For instance, some insurers are best suited at offering liability insurance, while others have years of experience in auto insurance. The broker also knows companies with a straightforward claims process and reasonable adjusters. It saves you from spending extra cash on an independent adjuster as you make your claim. The broker also understands the work ethic, operating principles and customer care policies of the various insurers. This information will ensure that you only work with the best insurance companies for your business.
Assessing The Fine Print Of The Cover
When taking the cover independently, you may assume that the policies have similar terms. However, this is not the case. The broker will read the fine print of the various covers to determine the liabilities covered by the insurers. For instance, a property insurance policy could cover Acts of God. On the other hand, another could cover fires and flooding. Suppose you took the latter cover; you would not qualify for compensation if an earthquake hits your business.
Reducing The Annual Premiums
Insurance brokers use a variety of strategies to reduce your annual premiums. For instance, they could ask you to address workplace risks that could increase the premiums. For example, installing fire safety devices goes a long way in proving that you can manage fires before they cause extensive damages. The broker could also negotiate with the insurer to combine several covers. For instance, liability covers such as professional indemnity, general, product and public liability insurance could be packaged as a single product. This way, you will pay lower premiums. In some cases, the broker will bargain the premium rates since they bring many clients to the insurance company.
An insurance broker will help you choose a suitable insurer, assess the fine print of the cover and reduce the annual premiums. As a rule, your broker must have the required licencing and experience.