Uncertain times drive more businesses to seek broker advice
Many SME owners are looking to the future with caution, amidst concerns difficult economic conditions could be on the horizon. A new report highlights that these concerns could be causing more small businesses to reach out to an insurance broker.
This year, Vero's SME Insurance Index marked its 10th anniversary. The report revealed that 40% of respondents used a broker for their last insurance purchase, up from 35% last year. While in 2018 just 34% of direct customers were considering using a broker, this figure has since steadily increased to 54%. Vero presumes this trend is partly tied to the ongoing COVID-19 pandemic and uncertainty about what the future holds.
According to the report, one in five small businesses don't feel confident about their business prospects for the near future. But of all their concerns, the economic downturn was their most immediate worry. Such factors are seemingly driving SME owners to explore their insurance options with a broker. What's more, the index suggests this decision could be the best decision a small business ever makes.
Navigating the policies available to you and weighing up which is best can be challenging, even more so if you have little or no experience in insurance. The process of arranging suitable insurance coverage isn't linear. With brokers specialising in the area, they can provide invaluable peace of mind every step of the way. They are in the know-how of the key industry developments and advancements, and should the worst happen, they would be there to help come claims time.
Usually, the brokers carry out tasks such as providing in-depth analysis on their insurance options, checking up on business changes, giving information on changing requirements, and advocating on a client's behalf with insurance cover and claims.
Based on this year's report, the vast majority of broker clients are satisfied with their broker - only 8% reported being dissatisfied.
Especially when asked about their experience with the claims process, 72% of broker clients were satisfied, compared to only 37% of direct customers. Those that reported the highest level of satisfaction had collaborative relationships with their brokers.
Some 51% of SMEs that have a collaborative relationship are highly satisfied with their broker, marking them a 9 or 10 out of 10. But the equivalent figure for those with minimal interaction is just 24%.
Staying in regular contact with your broker helps you get the most out of your broker-client relationship. You can stay up to date on the latest industry trends and changes impacting your business, and your broker can maintain a current understanding of your SME. It's with this information that they can get you the very best cover at a competitive price.
How Coverforce can help
Our experienced team of brokers are here to help protect the financial future of your business. As you business' needs change, it's important to let your broker know to ensure your cover remains the best option for your circumstances.
For more information or to arrange cover for your business, please contact your local Coverforce office.
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.
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