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SMEs: 6 reasons why businesses should use an insurance broker

Learn how an insurance broker can help ensure your commercial insurance coverage is cost-effective and customised to your business’s needs.

Role of broker

Businesses in Asia are facing an increasingly uncertain and volatile risk environment, with growing concerns in inflation, economic downturn, supply chain disruption, labor and talent shortage, extreme weather and emerging risks such as cyberattacks.

Small- and medium-sized enterprises (SMEs) in particular should proactively seek ways to better mitigate their businesses against these risks, as the potential financial lossess can place further strain on their employees, supply chain, and revenue. 

Insurance is one of the commonly adopted approaches to provide businesses with peace of mind by ensuring financial security even after suffering losses, damages to property and assets, or business interruption.

How can SMEs determine adequate business insurance coverage?

The challenge is that there are a multitude of products and coverages for SMEs available in the market, which makes it difficult to decide what is best for your business from both a financial and a risk management perspective. Speaking to a qualified and experienced insurance broker can help you make informed decisions and obtain the appropriate coverages for each risk.

Contrary to many SMEs’ belief that buying insurance via a broker incurs additional expense, a broker is instrumental in helping you find the best-value coverage amid inflation and elevated premiums. With their market knowledge and insurer network, they have the ability to help SMEs obtain capacity in challenging areas such as property damage and business interruption, particularly for assets exposed to natural catastrophe and climate risks, as well as provide an unbiased assessment of which policy is right for them.

In addition, by accurately defining the scope of a business’s insurance needs and identifying risk exposure blind spots, an insurance broker plays a vital to helping SMEs stay afloat in challenging times, meaning that SMEs focused on survival during challenging times can gain additional peace of mind by partnering with a broker. This is because, by entrusting the complex task of optimising and strategising risk management and transfer to a broker, SMEs can focus on more crucial aspects of their business, from day-to-day operations to business expansion. In short, an insurance broker can empower your business’s growth.

6 key benefits of using an insurance broker

  1. Uncovering risk blind spots: A broker uses their expert knowledge to highlight areas of cover that you may not have considered but could potentially expose your business to risk.
  2. Insurer relationships: A broker can leverage their relationship with insurers to make sure that you receive the best cover at the best price, or access capacity that might not be available otherwise.
  3. More cost-effective: With in-depth actuarial expertise, a broker can calculate which of the program and deductible structures offered by an insurer is most cost-effective, without compromising your protection. For SMEs, brokers may also have highly cost-competitive, pre-negotiated policies across several lines.
  4. Dedicated service: A broker’s role doesn’t stop after you’ve purchased the policy. They continue performing valuable day-to-day services and monitoring the adequacy of coverage limits and policy terms as market conditions fluctuate.
  5. Claims support: In the event of a claim, a broker provides you with support and expertise in settling the claim as quickly and efficiently as possible.
  6. Your reliable advisor: A broker acts as an advisor and a consultant, supporting you in making the right decisions for your business. For instance, for professional indemnity policies that require you to either notify your insurers (if you become aware of a claim against you in relation to your professional activities) or when you become aware of a circumstance that may give rise to a claim, a broker can provide valuable advice and guidance on whether you should notify the insurer and what information is required.

Finding the right insurance broker is vital to your business’s success

An insurance broker is not simply an expert in risk management and transfer, but also your critical ally in navigating the complex world of business risks. However, before engaging a broker, it is helpful to understand whether your business’s existing level of insurance protection is adequate. You can do so with Marsh’s Corporate Insurance Survey, a free, 7-minute assessment help you identify gaps in your existing protection.

Discover your insurance protection gaps for free.

Click below to take the Corporate Insurance Survey and put your business on course for resilience and success amid uncertainty and volatility.