When you’re running a business, you want to ensure all assets are protected regardless of future circumstances. It goes without saying, one of the most important things to get right to protect and help sustain your business is insurance.
Insurance brokers are professionals who specialise in providing expert advice in risk and insurance. An insurer is a company which is licensed by the Australian Prudential Regulation Authority (APRA) to underwrite insurance policies (effectively ‘creating’ insurance policies – accepting the risk that goes with them). Insurance brokers act on the behalf of their clients to communicate with insurers – brokers must hold an Australian Financial Services Licence (AFSL) and meet a strict set of obligations.
Insuring through a broker
It’s an insurance broker’s job to work alongside clients to act in their best interests. They are enlisted to communicate with clients to learn and understand the nuances of their business and go forth to arrange for them the most appropriate insurance cover at the most affordable price. Of course, the main thing nagging insurance-buyers is the fact that brokers charge a fee on top of the policy’s normal premium. What is less known about the broker fee is that it is most often coupled with a lesser premium, because the broker has worked hard and negotiated a deal just for you. This means that more often than not the overall total cost is cheaper because the broker has organised a cover that is adequate, yet free from unnecessary add-ons.
Why choose a broker?
A broker will help you identify the risks specific to your business and help you decide what to insure.
A broker will assist in the claims process, and provide important technical advice to ensure you are claiming for the right things, and for the right amount.
Brokers are aware of the terms and conditions, benefits, exclusions and costs of a wide range of competing insurance policies, so they can help you find the most appropriate cover for your own circumstances.
Brokers can help arrange and place the cover with the chosen insurer, they can ‘shop’ various insurance markets for you and often provide advice on how to make the most of your insurance budget. Some insurance policies can be complicated, and an insurance broker can help you understand the details of a policy and also work out what level of cover you need so that you can make sure you are properly protected.
An insurance broker can save you time, money and worry. A broker can help you understand the cover you need, and can purchase that cover for you from the insurance market.
Choosing a broker
Just like with any business relationship, you want your experience with an insurance broker to benefit your business. Look for a broker who can provide local service, is a member of the National Insurance Brokers Association (and therefore follows its strict Code of Practice) and is personally qualified to provide advice.