Should small businesses use an insurance broker

If you are a small business, it’s important to know that brokers take your best interest into account, and work for you, they DON’T SELL INSURANCE.

It feels less time-consuming punching information onto a computer or laptop on a direct insurers’ website primarily because of their accessibility to online products and get an instant quote. We have all done it, and we have all tried to be our own experts! It is justified if it is a simple quote for your vehicle or home insurance, but if you are a small business owner you might want to rethink your shortcut option. There are numerous products available for businesses and it can prove unsettling to know exactly what will be best for your small business.

The truth is, a broker can offer expert advice and explain certain “terms and conditions”, “extra benefits” offered and “exclusions”, and advise you if there are any special situations you need to know about. 

When you appoint a broker, not only do you have an established relationship with the person who advised you on your policy, if you need to make a claim, you can hand the process over to them, leaving you free to run and grow your business. 

More reasons why you need a broker

• Insurance policies can be complicated and a broker can explain to you and help you understand the “fine print”, and work out what covers your business needs and what “cover sections” you do not need to pay for” to ensure you and your business are properly protected.
• Assist you with preparing your business claim from lodgement till settlement (receiving funds or repairing damage) or finalisation of the claim and negotiate the best outcome for you. Sometimes you may need to escalate the matter to the IDR (Internal dispute resolution team) or AFCA (Australian Financial Complaints Authority) and your broker will assist you through the whole process and take charge.  To the contrary, direct insurers may operate call centres so you will possibly speak to a different claims assistant each time you call, which can be quite frustrating.
• Brokers have access to policies that are not available directly to the general customer. There are tailored policies in the market with competitive pricing and are superior quality products compared to a relatively less priced policy, and cover that is not up to standard especially if a claim arises.
• You can contact your Broker anytime! Changes to your small business can have an impact on the risks you face, and these will need to be factored into your insurance requirements. If you have changes to make to your existing policy or need some information or advice on a new product you can always contact your broker.
• Your broker will shop around for you before your next policy renewal date.  That’s right! Being a small business owner and keeping busy all year round – who has time to look at other options? Your insurance broker will make sure they take the hard work out for you, by reviewing any changes to your policy and re-marketing your cover for you. At Avoca Insurance Brokers we ensure we contact you at least 30 days prior to your insurance renewal date to ask about any changes to your policy, advise of updated documents required and to make sure we have all information on hand to approach different insurers for the best quote for you.

At Avoca Insurance Brokers we will provide you with advice on the insurance your business really needs to grow.