Great brokers benefit your business and the economy
When it comes to protecting the future of your business, there is a lot more to consider than the price alone. Using an experienced insurance broker is a great choice, not only for your business but for the wider economy.
Benefits for businesses
- Provide risk management and policy advice - Brokers can help to identify your current and emerging areas of risk and provide guidance on levels of cover, limitations, exclusions and product customisation. These details can help you to make a more informed decision when choosing the most appropriate cover for your business.
- Assist in finding the right insurance cover - Brokers will get to know your business so that they can find policies that best align with your specific risk profile and budget. This can include different products that are not widely known or accessible without a broker.
- Offer claims support - Brokers can help to simplify the claims process. They can manage claims on your behalf and help guide you on how to best relay the details of an incident to your insurer. This can lead to more timely and comprehensive claims outcomes.
- Facilitate access to more competitively priced products - If you are part of an association, industry body or franchise, some brokers can arrange for you to purchase insurance policies in bulk through group insurance schemes. By tailoring products and policy wordings to the needs of the group, your premium will reflect only the necessary coverage, therefore reducing the price.
- Conduct regular policy reviews - If there are changes to your business or market conditions, brokers can adjust your policy to ensure your cover remains suitable for your current circumstances. And when it comes to your renewal date, brokers can provide updates on the latest changes in policy options and product comparisons.
- Act as a 'middle-ground' between client and insurer - Arranging your insurance through a broker means that you as the client only need to communicate with your broker and not directly with the insurer. Your broker will negotiate quotes with the insurer and arrange cover on your behalf, so you don't have to worry.
- Helps reduce instances of underinsurance - On average, 40% of clients are underinsured or not insured at all before engaging an insurance broker¹. Brokers can help you identify whether you have the right level and scope of cover in place so that you don't discover you aren't appropriately covered when an incident occurs.
Benefits for the economy
- Contributes to GDP - Brokerages collectively contributed almost $2.6 billion in Gross Value Added (GVA) directly to the Australian economy in 2018-19¹.
- Supports economic stability - Through facilitating improved product matching, more efficient claims outcomes and better risk management, brokers help to support market efficiency and financial stability. This also helps to limit instances of underinsurance or over insurance.
- Encourages better economic recovery after an incident - As a result of better product matching, businesses with more appropriate insurance cover are more likely to withstand and recover faster after an incident. This is of importance where an incident effects a broader region, e.g. a natural disaster. It can also help reduce the reliance on government support and disaster-relief expenditure to support local economic recovery.
- Builds business resilience - Should you need to lodge a claim following an incident, brokers will work with the insurer on your behalf to ensure you receive your full entitlement without delay. Timely claims payouts can help with your ability to maintain staff and operations, meet debtor requirements and hopefully get your business back to normal sooner.
How Coverforce can help
At Coverforce, our expert team of brokers will take the time to understand your business and can help to arrange cover that is tailored to meet your specific risks and makes the most of your insurance budget.
If you haven't already, get in touch with your local Coverforce office or call 1 3000 COVER and speak with our team today.
The information provided in this article is of a general nature only and has been prepared without taking into account your individual objectives, financial situation or needs. If you require advice that is tailored to your specific business or individual circumstances, please contact Coverforce directly.
REFERENCES
- https://www2.deloitte.com/content/dam/Deloitte/au/Documents/Economics/deloitte-au-dae-niba-economic-value-of-insurance-brokers-151020.pdf
Find this article helpful? Click on one of the links below to share the content.
