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| insurance broker |
An insurance broker is an exceptionally valuable person in the arsenal of any business.
Why?
Because insurance is all about risk – and brokers are experts in helping to identify and mitigate them, the risks businesses face every day. On many occasions they face risks, even they do not realize it.
"During the pandemic, for example, many businesses 'pivot' into offering new products and services, delivering products, and introducing different ways to transact business," said interim general manager at QBE, Laurel Hillman says
"This can inadvertently create new risks, and unless the right cover is in place, it can have consequences for the business."
The transaction of buying insurance is something that many of us are used to doing online in our personal lives – for example, when our car rego is due.
However, business insurance can be an entirely different proposition, and it is important to find the right solution to suit your individual situation.
Doing it yourself can be a time consuming process.
Research1 shows that each client working with an insurance broker saves 11 hours – and that time – that could be spent in other areas of your business.
There are many insurance products on the market, and having someone able to navigate and evaluate them on your behalf can be beneficial.
“Knowing an expert has reviewed your business, identified the right policies and limits for you—and therefore, covers everything you have—is incredibly reassuring,” Hillman says.
"The right broker can be a reliable advisor to a business and add significant value."
power of conversation
Identifying risks is only one aspect of an insurance broker's role. From there, they will find the right insurer to place your risk.
And it is a task that requires skill in today's market. Having a relationship with insurers, knowing how they work and what they are looking for, helps in setting up policies efficiently.
"Insurers want to see that businesses have an understanding of the risks they face, and that they have mitigation strategies in place to deal with them," Hillman says.
Naturally, insurers need to understand the risk they are covering. So knowing exactly what brokers they are looking for can keep your policy at a competitive rate, by ensuring that you are not being covered for things you do not need.
Verifying that you are insured at the correct levels
You may have insurance, but have you insured at the right prices for today? Research1 has found that 40 percent of clients are either underinsured or not at all insured before joining the broker.
And it's easy to fall into a low insurance trap. Eventually, the prices of goods and services change, property prices go up, and sometimes there are hidden costs to get you back to the state you were in before an event happened.
"An insurance broker will work with you to review your business risks at least on an annual basis," Hillman says. “They will be able to advise you on market changes and anything that may affect your sum insured, and adjust them accordingly.
"The last thing you want in the event of a claim is that you're not insured enough to get back on your feet."
Help with Insurance Claims — Navigating the Process
Brokers also add value during the claims process. Insurance is something we buy but hope never have to use – but if you have to make a claim, it can be stressful, especially if it happens during an already busy period.
The broker is well versed in the claims process, and can manage all the plans on your behalf.
Research1 has found that brokers with their expertise save a client an average of two and a half hours in claims processing, and 41 per cent of SME clients agreed that the claims process would have been 'very difficult' without their broker. His side
"The broker is really the lawyer for you during a claims process," Hillman says.
"Effectively, they go to bat for you, and deal with everything the insurer needs to process your claim quickly."
Insurance Brokers and Clients: In this for the long term
While an insurance broker can add significant immediate value to your business, the real benefit is working with a broker over the long term. They will get to know your business and can become a real reliable consultant.
"This is especially important at the time of renovation," Hillman says. “A good broker will pre-empt many negotiations and start the renewal process early, to make sure you are getting the coverage you need for the risks you face today.”