Advantages of Hiring an Insurance Broker for Your Business
Insurance policies can be a lot to deal with. Especially if you’re someone who’s busy with running their business, you might not have the time to look over every insurance policy out there, making sure you’re getting exactly what you need.
Businesses require a lot of insurance policies. For example, they’re required to have insurance policies for their employees, property insurance, product liability insurance, professional liability insurance, d&o insurance, and so on. It’s a lot.
On top of all the different kinds of insurances out there, there are just as many insurance companies. The differences can be subtle and an untrained eye can miss important details. This is where insurance brokers come in.
What Is an Insurance Broker?
An insurance broker is someone who looks over insurance policies instead of you and recommends the ones that would suit you best. Unlike insurance agents, insurance brokers don’t work for insurance companies, they work for you. Their job is to consult with you and look over different policies so they can aid you in the insuring process and make things a lot simpler. Since your broker is working for you, they always have your best interest in mind. They’re equally as important, if not more, as hiring a strategic planning consultant for new businesses.
Why Should You Hire a Broker for Your Business’ Insurance?
No matter if you’re running a small or a big business, an insurance broker is a must. They’ll prove to be an extremely valuable part of your team. We’ll illustrate the reasons why that’s so by taking directors and officers insurance as an example.
You’ll Get Professional Knowledge on the Available Options
Every company has someone at the top who’s running things. D&O insurance is for them. There are many insurance d&o policies out there, but how do you pick the best one? Over a hundred insurance agencies are operating in Australia and they all have their own ways of working. For something as important as d&o insurance, you definitely shouldn’t wing it, especially as the safety of your directors and officers is tightly connected to the safety of your company.
This is where your insurance broker comes in. A good insurance broker has been in the business for years and knows the ins and outs of all the companies out there. They will assess your situation, taking the size of your business into account, noting how many people are in need of this type of insurance, and help find the insurance d&o policy that suits you best.
They will give you expert advice and explain the differences between the different insurance policies, making sure you understand why they’re recommending one policy over another. This is a very important process as you’ll know exactly what you’re getting for your money and why one company is better than another.
They’ll Conduct Expert Research to Save You Time and Money
You might think that d&o insurance is only for big companies, but the fact is that smaller businesses are much more at risk of having a lawsuit filed against the ones running them, and we’re sure your broker will agree. Having your personal assets insured should definitely be a priority.
There is a lot that needs to be reviewed when searching for suitable insurers. The history of the insurance companies, their financial strength, the coverage they can offer you, the price they’re asking, their way of doing business, what others say about them and what kind of reputation they have – there’s really a lot to look into.
Your insurance broker will do this research for you. What’s more, they are probably already familiar with most insurance companies offering the insurance you’re looking for, so they’ll do the research much faster and in a more efficient manner. They are trained professionals in the field and will save you a lot of time.
Furthermore, they’ll be able to look through any existing policies you might already have and see if you even need to take out a new one or recommend a better one, thus saving you money.
They Can Help Handle Any Claims
The most important aspect of an insurance broker’s job is probably their role as a middleman between you and the insurance company. This is something that really shines through when it’s time to file a claim.
Even though most brokers aren’t familiar with the law, by having an insurance broker partner up with a lawyer, you have a stellar team that’s here to handle your claim. Your lawyer will provide the legal know-how while your insurance broker will keep communication with the insurance company going, making sure everyone’s cooperating smoothly and can find common ground.
Insurance brokers usually have people on the inside they can talk to about your claims and they can set meetings with insurers, so it’s not just a legal battle, it’s an open communication process that has you covered from two sides.
Your broker is familiar with your background and knows the policy you have in-depth while your lawyer is familiar with the legal aspects and makes sure everything is going as it should, prepares arguments to support your case, identifies legal points they can use to pressure the insurance company, and so on.
Ultimately, by using an insurance broker alongside your lawyer, you’ll have a team that’s experienced in two different fields and is working toward the same goal – your success.
To Sum Up
It’s much easier to make a mistake when choosing an insurance policy if you’re doing it by yourself. There are many aspects to take into account when reviewing coverages. An insurance broker will break them down for you, give you professional advice, find the best policy for you, and ultimately help you with claims.
Just like insurance policies, there are many insurance brokers out there, too, so make sure you’re getting one that’s experienced and will really have your best interest in mind. To choose the best broker for your company, you’ll first need to get some referrals. Next up, make sure your broker is well versed in the field you’re hiring them for, be it insurance d&o or product liability insurance. Keep in mind that this is a person you’ll trust with your insurance policies, so always tread carefully and do your research before hiring one. It will all pay off in the end.