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Why you need a broker for your insurance transaction

If you’re trying to navigate your way around the often complex world of insurance and need a little help, it might be time to speak with an insurance broker.

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An insurance broker is a professional adviser who is an expert in insurance and risk management. They act on your behalf to make the process of finding insurance a whole lot easier. We will be discussing some of the reasons why you need an insurance broker.

Let’s start with…

Who is an insurance broker?

An insurance broker acts as an intermediary between you and an insurer. An insurance broker helps both individual people and companies to get the right insurance for themselves, their home, businesses, and family. Many brokers focus on a niche, working with one kind of insurance or within a specific industry. Many others offer advice on several insurance types. Overall, insurance brokers help you find and buy the right insurance — usually at no cost.

An insurance broker represents you as you search for the right policies for your needs. They work for you, not the insurance company.

Why use a broker

Insurance brokers have access to many different insurance policies. Because they deal with a range of insurance companies directly, sometimes brokers have access to policies that are not available to most consumers.

Objective Risk Assessments

The purpose of insurance is to cover your areas of risk, so you’re protected financially when things go wrong. Of course, you need to know what your risks are in the first place, so you’re not caught out at claim time. They’ll look at your unique situation and identify the specific areas of risk that need to be covered. They also know the risks across a range of different industries.

Liaise directly with the insurer

Let’s be honest, when you’re busy, the last thing you want to do is be on the phone all day with insurers to negotiate premiums or follow up on a claim. With an insurance broker, they do the entire liaison on your behalf and know exactly who to speak to so you get the right answer. Whether it’s speaking to an insurer about the technical details, advocating during a claim, or asking specific questions, your broker will take care of these queries on your behalf. This means you have one point of contact rather than speaking with different insurers about multiple policies.

Advocates at claim time/Claim support

When it comes to making an insurance claim, your broker makes life a whole lot easier. Once you contact your broker about a potential claim, a broker can ease that burden by helping you file a claim and communicating with the insurer on your behalf until the claim is resolved. They’ll also be able to let you know exactly what documentation is required, such as photographs, receipts, and other proof of purchase, so there are no hold-ups.

Accurate technical advice

Whether you want to check that you have the right level of cover, want more information about your inclusions or exclusions, or have a question about your premiums, all you need to do is give your insurance broker a call. They have the technical knowledge to offer professional advice around your insurance, and you can be confident that you have the right level of insurance cover in place. Insurance comparison sites won’t help you navigate the finer points of every insurance policy. Still, an insurance broker can help weigh the available coverage solutions and bundle your policies straightforwardly and cost-effectively.

The Broker’s Duty is to Help You

Using a broker simplifies the process of choosing insurance. There are many options, with various limits, coverage, and exclusions for each policy. It’s hard to know what types and levels of coverage are right for your situation. This is how insurance brokers help.

Unlike dealing directly with an insurer, an insurance broker can access a range of different policies offered by different insurers. This means they have no vested interest in a particular policy and will instead work to find the best product for your specific situation. When you contact an insurer directly, they’ll be able to inform you about the products on offer from their particular company. Still, it will be up to you to compare their products to policies from other insurers. Your broker will take the hard work out by accessing several policies to find your needs’ best product. From the initial stages of choosing an insurance policy to offer support at claim time, your broker is there to support you – not the insurer.

 Reviews your cover regularly.

When you’re a busy business owner, it’s easy to take insurance cover out and renew it year after year without looking at other options. After all, who has the time? However, if you don’t review your policy, you may miss out on more cost-effective or better quality cover. When it comes to renewal time, your insurance broker takes the hard work out for you by reviewing your current cover to see if any changes need to be made. This could be negotiating with the current insurer around premiums or approaching a different insurer to see what they can offer. Due to their ongoing industry training, your broker will also be across new products to the market, which may be more appropriate for you and your business.

Professional & Personalized Service

One of the main advantages of using an insurance broker is that you can take advantage of the personalized service they provide. Not only do brokers know the insurance industry, but they’re generally great with people. After all, they’ve chosen to work face-to-face (and phone-to-phone, or screen-to-screen) with their clients to understand their needs thoroughly. When you craft a relationship with a friendly and competent broker, you could enjoy more peace of mind – and that’s a major bonus.

Accurate Policy Comparisons

Firstly, researching and comparing insurance plans without an insurance broker’s help is tedious, at best. It requires significant time to analyze every option to decide whether they fit what you need. Without expert assistance, there’s always a higher risk of getting the wrong coverage. And of course, this can be very costly in the long-term, especially if you need to make a claim. A good broker advises you accurately, without costing more.

Cost Savings on Your Premiums

How do insurance brokers provide this expert advice without it costing you extra? Brokers can get lower rates on insurance for you. The insurance companies offer brokers lower rates because they know brokers guide their clients to purchase the right policy with proper coverage.

Policyholders using insurance brokers make fewer unnecessary claims and are more likely to be insured for the right amounts. So, ultimately this saves insurance companies money. As a result, as a broker’s client, you have lower premium cost options.

Your broker offers you a range of different insurers’ quotes for more options to fit your needs and your budget. The ability to shop around for the best price from several carriers usually saves you money when you use a broker.

Final Thought

In summary, your insurance needs are best met by a broker who specifically works for you and not an insurance company. Working with an insurance broker offers more advice, more choice, and a lower price. And if you need to make a claim, you have an advocate, too.

Searching for the right insurance coverage can be time-consuming. If you want a better deal, or you are unsure of exactly what coverage you require, an insurance broker is right for you.

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