Most people already know that insurance is a fact of life, whether you’re looking to keep your vehicle legal on the road or simply want to protect your investment in your business. There will come a time when you need to purchase a policy.
With so many companies out there, how do you know which one to select? Furthermore, how do you know the one you choose will place a high priority on your best interests? And what about all those online websites that claim to have the best options?
In most cases, it can be difficult to work with an individual company or an online platform. These setups just simply don’t offer the type of individualised service that you can get with an insurance broker. Here is what you need to know about choosing an insurance broker over other options when purchasing coverage.
What does an Insurance Broker Do?
Of course, it is important to understand what a broker does before ultimately deciding to utilise one for your company’s insurance needs.
An insurance broker works with several different insurance companies and is not tied to a single company. Instead, they have access to a multitude of different carriers to help you find the one that meets your needs the best.
How is this different from an insurance agent? Insurance brokers are different from agents because they aren’t committed to a specific company or a couple of different companies. This means that they aren’t contractually obligated to only sell policies for that company. In the end, this works to your advantage as your broker is there to specifically find the right policy to suit your unique needs and not to meet their specific sales quota.
Why is an insurance broker better than going direct to an insurance company or online platform?
The biggest reason why an insurance broker is better comes down to the benefits of a more personalised service. With a brokerage, there is generally much more leeway when it comes to getting to know clients, understanding their intricate needs, and finding the policy that best meets their risk level and budget.
In contrast, most online platforms never even give you the opportunity to speak to an actual person. They just expect you to fill out information, click a button, and choose from one or two different options. Instead, a broker is there to answer all of your questions along the way while customising your coverage where appropriate.
Can an Insurance Broker save me time and money?
In most cases, working with an insurance broker is the easiest way to save you time and money. Why?
Instead of having to shop around for the best business insurance coverage, your broker does this on your behalf. Since they understand your needs and budget, they will check with several carriers to ensure you receive the best deal possible, and without taking time out of your day.
Finding you the right insurance solution can often be a complex task. However, a broker will also save you time and money, especially if you do need to make a claim and know you have the correct cover.
Why is Having an Insurance Broker Important for Complex Risks?
Another reason it is important to work directly with an insurance broker or agent is that they can help you navigate complex risks. For example, let’s say you need professional indemnity insurance or cyber insurance. Would you trust your insurance well being to someone who typically only handles personal auto insurance and isn’t an expert in your industry space?
In most cases, it is better to work with a broker who understands the full magnitude of your insurance needs. If you’re in the financial technology sector or another niche industry, an independent insurance broker will discuss your exact needs and level of risk with you, before you purchase coverage.
Think of it as having your own personal insurance expert available to ensure you are covered at the right level, with the right kind of insurance, thus, mitigating your risk exposure.
What is the Best Insurance Company for Business Insurance?
Essentially, this is almost an impossible question to answer. Each company has different strengths that make it a better choice for some policyholders and not others.
This is why working with an experienced insurance broker is so important. Agents understand the unique needs of their clients, while experience with individual insurance carriers offers the ability to match them up with the most ideal carrier for their situation. Think of a broker as a matchmaker for insurance protection.
Furthermore, they can help decipher the difference between actual risk and perceived risk. This means that your broker is there to help you find the company that meets your criteria versus just a standard one for your industry. In the end, this can help keep you from having to purchase the coverage you don’t need or skipping out on the stuff that you really do.
Do Insurance Brokers Do More Than Just Sell Policies?
Some do and some don’t. At CMX Insurance one of our points of difference is that we do more than just policies. We can offer risk management advice to clients to help them minimise risk or and reduce the overall chance of an insurance claim.
This is an important factor for business owners to consider because not all risk can be transferred to an insurance company. We take a holistic approach to risk management rather than just your insurance needs because good risk management reduces the risk of future lawsuits and insurance claims.
How Do I Find an Insurance Broker?
Finding an insurance broker or agent isn’t as difficult as one might assume. If you’re in the market for business insurance in Sydney, look no further than CMX Insurance Solutions. We take the time to learn your business, undertaking a complete needs and risk analysis, before recommending any policy products or insurance providers. We also advise our clients on how to manage their risks and reduce the overall chance of an insurance claim.
Simply put, we offer our customers honest and knowledgeable guidance to help get the service they need, and without having to call around a bunch of different companies or agencies. We are proud of what we do and cannot wait to help you in any way we can.
Ready to discuss your business insurance needs? Please contact our team of experts at CMX Insurance Solutions to schedule a no-obligation policy review on 1300 020 148.