Why you need an insurance broker in your corner
If you're a small to medium-sized business, you need an insurance broker to help keep your company protected.
Often, it's assumed that brokers are more aligned with big companies and that, as an SME owner or manager, you need to take charge of your business' insurance needs yourself. But, a report prepared by Deloitte Access Economics shows just how risky it can be to go at it alone.
The National Insurance Brokers Association (NIBA) commissioned this research, which found that before engaging a broker, around 40% of SME clients were under-insured or not insured at all. About 33% were paying more on their insurance prior to enlisting broking advice. And 41% of SME clients agreed their claims process would have been "much harder" without the support of a broker.
One business owner who is quoted in the report says she made the right move to seek advice from a broker. "People don't understand the risks of going to the standard, cheapest policy. They might have saved, but they didn't know what they were covered for."
In the 2019 Townsville floods, the business owner's farming property was severely damaged. During the claims process that followed, her broker advocated strongly for her. On her behalf, the broker negotiated with the insurer, securing an additional $10,000 on top of what was originally suggested.
"You could talk to them about what you're going through; they understand, and they are emotionally involved," she says. "Without their support it would have been a totally different journey."
The value of insurance brokers is often misconstrued, with individuals not recognising the myriad of benefits that could be provided to them. The responsibilities of your broker go far beyond arranging a suitable insurance solution. It starts with helping clients fully understand any risks or threats to their business, which acts as a basis for providing tailored risk solutions. They represent your interests, negotiate with insurers and advocate for you throughout this process.
The current business climate is challenging and, with this in mind, insurers are conscious of which cover they are comfortable providing. Certain businesses can contain a higher level of risk, but thanks to working relationships with underwriters, your broker may make a big difference. Professionally and strategically presenting your unique risk profile, your broker can help you get the best coverage at the lowest possible price.
So don't risk it with Google, because buying insurance direct means you're on your own in assessing your risks and fighting for the best claims outcome.
How Coverforce can help
We are here to help protect the financial future of your business. Our experienced team of insurance brokers will work hard to deliver personalised risk advice and smart, cost-effective insurance solutions tailored to the specific needs and budget of your business.
If you haven't already, get in touch with your local Coverforce office 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.
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