Choosing the right insurance broker

African couple consultations with a lawyer or insurance agent.

Many small business owners are feeling the pressure of operating in today’s challenging market. With assets, people and revenue to protect, the complexities of business insurance is not something they need to be worrying about. An experienced broker will act on your behalf to find the insurance coverage that best suits your business and your budget. Along with this, your broker will also advise you on potential risks and what covers you should consider to manage those risks.

Not only are there many different types of insurance products out there but there are also different types of brokers. Business owners need to make sure they choose the right broker for their business. Many insurance brokers offer a general service but some also provide specialist advice on particular business areas such as marine and aviation insurance.

Your business could have specialised risks such as working with hazardous substances. Some industries have trade insurance schemes, agreed with an insurer and tailored to the needs of that industry. A specialist broker will know the right insurers to approach rather than flooding the market, which can have a negative impact on how the insurance market views your business. They will also know how to present your business clearly with a view to getting the right cover at the right price.

Here are some things to consider when choosing the right broker for your business:

What is their claims ability and service? Consider team size, services on offer, availability, and response times. Ask yourself, ‘How well equipped is the broker to help me quickly in the event of a claim?’
What kind of relationships does the broker hold with insurers and providers? Consider their reputation and partnerships, and whether they have positive engagements and relationships in the industry. Are they trusted as a broker?
What experience do they have in your business sector? Some things to consider include; what experience and expertise do their people have that could benefit your business? Does their team size suit your business needs? Would you have a dedicated account manager to look after your business?
Consider the reach and network of the broker; what kind of capabilities and resources can they access? Would your business benefit from a more specialised service, and if so, does the broker have the capability to support you with this? How well do they understand the risks that your type of business faces?
What do their clients think about them? What recommendations or references can they offer that show they can help you? Do they have any case studies that relate to your needs?

Choosing a broker shouldn’t be taken lightly as the right broker can bring tremendous value to your business by helping you balance your insurance costs with maximum coverage, and keeping you updated with the latest market trends so that you are aware of potential risks, whether or current or still in the future.

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