Kristina Fox
Business insurance brokers may be able to help you to find an insurance policy to suit your business. If you’re finding it difficult to make sense of the jargon, or you have non-standard requirements for your business insurance, a broker may be able to assist you.
What is an insurance broker?
An insurance broker is a professional adviser regulated by the Financial Conduct Authority (FCA) who has expert knowledge about the insurance industry. They may be able to help you find an insurance policy that is tailored to the specific needs of your business.
Brokers act on your behalf when dealing with insurance companies. This means they can organise your initial policy and also talk to your insurer on your behalf if you have to make a claim. They can also assist you with any changes to your policy after you’ve taken it out.
If a broker finds a suitable policy for you, they are either paid commission by the relevant insurer or collect a fee from you for their services and sometimes it’s a mixture of both.
Do I need a business insurance broker?
You don’t have to use a broker in order to get a business insurance policy. However, you may find it useful to talk to a broker if you are unsure and would prefer advice on which types of insurance could be most suitable for your business.
» MORE: Everything you need to know about business insurance
If you find insurance documents difficult to decipher, you may consider using a broker. Since a broker has expert business insurance knowledge about the ins and outs of business insurance, they can explain exactly what is and isn’t covered by a particular policy.
This also means they can advise you on where you may need more or less cover and tell you whether you are already insured by an existing policy. They can also highlight areas of your business you may have forgotten to think about.
If you have specific, non-standard requirements, brokers can try to find specialist insurance to suit your needs.
» MORE: Do I need business insurance?
Pros of using a broker for your business insurance
There are advantages to hiring a broker and these include accessing:
- independent advicefrom an expert
- a policy designed for your specific needs
- a wide choice of deals – brokers can approach a range of insurers to find the best insurance deal for your business
- specialist insurers to fit your business, if necessary
- help and support after you’ve purchased a policy –your broker can assist and represent you during the claims process
Cons of using a broker for your business insurance
However, keep in mind that using a broker:
- could take time – brokers do thorough research to find quotes, so it could take longer than you expect
- is less directthan going to a price comparison website or an insurer – you may not be able to get an immediate quote
- may involve paying a feefor their services, which could make it more expensive to use them than going direct.
» MORE: A guide to small business insurance
Compare business insurance today
If you’re thinking of using a broker for your business insurance, it’s important to find one that is regulated by the FCA. You may also look to consider if they are registered with the British Insurance Brokers’ Association (BIBA), the insurance broking industry’s representative body.
You can browse the BIBA register to find an authorised and regulated broker who is signed up to BIBA’s practices and procedures.
Image source: Getty Images
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