As a business owner, you are familiar with the hard work required to establish your business, so keeping it afloat is your top priority. That’s why having the appropriate insurance cover will allow you to forge ahead confidently, knowing your hard work is protected.
In theory, this sounds like rainbows and sunshine; however, according to Deloitte (2020), 40% of people are underinsured or not insured at all before contacting a broker. This would leave them and their assets vulnerable to steep financial losses if an accident were to happen. This usually occurs because understanding insurance is hard. Many of our clients don’t know exactly what insurance they need and what options they have before speaking with us.
With this high number of inadequately insured, you’re most likely wondering, “could this be me”? The best way to find out is to contact a business insurance broker who can help you assess your business risks and current insurance cover.
What Is an Insurance Broker?
Finding an appropriate insurance policy can be tricky, especially if your risks are more complex or if you’re diving into the business insurance market for the very first time. A broker will be your guiding hand and providing advice on how to mitigate financial loss. They will conduct market research, undertake risk assessments, negotiate with insurers, and recommend an insurance program that suits your specific business risks.
In addition, they will regularly keep in touch to remind you when your current policy is up for review and help you revise your policy if there are significant changes to your business. Your broker works on your behalf to take care of all the nitty-gritty of insurance, so you have more time to focus on your business. The feedback we usually receive is that having a great broker on their side saves business owners an enormous amount of time and pressure of trying to understand the complexities of insurance.
So, what do brokers do?
- Review and understand the nature of your business and risks
- Advise on risk management and risk mitigation
- Work with you to identify the appropriate insurance coverage for your business
- Negotiate coverage with insurers to present you with policy options
- In the unfortunate event of a claim, the broker will work with you and the insurers to resolve this
Let’s dive deeper into what this actually means for you so you can weigh up whether working with a broker is the right path for you.
You may know your business like it is the back of your hand, but when it comes to selecting an appropriate insurance cover, you may overlook essential details, especially if you have complex risks. The Deloitte research report (2020) identifies that 62% of brokers’ clients had limited knowledge about their risks, and 90% of brokers said that their client previously had an inappropriate level of insurance cover for their level of risk.
When you don’t have a comprehensive understanding of your business risks, you are more susceptible to selecting an ill-fitting insurance cover. This is not ideal, especially when you may face significant financial losses without being aware of how they could occur. Without knowing what risks are in your business, it’s very difficult to know how to cover them.
At East West Insurance Brokers, we use our custom AI technology paired with our brokers’ industry expertise to determine your risk profile and provide you with a comprehensive risk report. This risk report will allow you to make informed decisions when selecting your insurance cover and provide you with better knowledge of your risks so you can implement preventative measures to avoid costly claims. Having this support and information at your fingertips means you’re set and ready to manage your assets with confidence.
More Options in Less Time
When you search for insurance, naturally, you would request a quote from multiple insurers to weigh up your options and find an appropriate cover at a competitive price. However, have you considered that many business insurers do not work directly with the public and require a broker representative? So, even though you may think you can do this job yourself, the pool of potential insurers open to brokers is a lot bigger than the pool you will be able to find yourself. Comparing quotes is also very time-consuming. Not to mention, the information you receive can be overwhelming if you are not familiar with insurance jargon.
This is when a broker will come in handy. They will take care of all the tedious tasks for you, the extensive research, the multiple phone conversations, the negotiation, and the paperwork. All you have to do is submit the requested information, sit back, and wait until your broker contacts you with some quote options for you to choose. Our brokers have fantastic relationships with insurers all over Australia, meaning they can get answers quickly and often negotiate very competitive pricing on your behalf. When partnered with the right broker, research has shown that they can save clients on average 11 hours of work. We are sure there are plenty of other priorities you would like to tackle in those 11 hours other than reading endless policy wordings and quotes.
A broker will be there when you need it most during the unfortunate event of a claim. The roadblocks that can occur during a claim’s lodgment can be frustrating since there are multiple steps to complete and important information to collect and provide. You’re often left feeling overwhelmed and flustered, especially after dealing with the stress caused by the incident whilst trying to minimise any potential business interruption.
If you have a broker, they will guide you through each step of the claim process and be there to support you during this crucial time. Your broker will help you complete the necessary paperwork and liaise with the insurer to make sure your claim is processed efficiently. They will also provide you with regular updates until your claim is resolved.
How Much do Insurance Brokers Cost?
The good news for you is that many insurance brokers work on a commission base from the insurance companies they work with, meaning that the cost out of your pocket is minimal. Some brokers charge a broking fee depending on the complexity of the situation, but every broker will disclose their fees with you before proceeding in a Financial Services Guide and Statement of Advice. There is no hard and fast set rule for fees and pricing with insurance advice, but it is important to work with a broker who is upfront and transparent about any fees. In the long run, using a broker to have the right advice and cover will be cheaper than finding yourself in a situation where you don’t have the right cover and are facing significant financial loss.
Business insurance is essential, and it is not worth the risk of getting it wrong. The purpose of a broker is to analyse your risk exposure and find the right balance of cover for your situation. The right broker will save you time and money, get the job done correctly and efficiently, and they will have your back and advocate for you if you ever need to make a claim.
We would love to help you find a broker in our highly experienced team here at East West Insurance Brokers. You can reach us via the below:
1800 809 132
firstname.lastname@example.org | www.ewib.com.au
Important Note: All insurance policies have exclusions. Please refer to the Product Disclosure Statement or Policy Wording to decide whether an insurance policy meets your needs.