Whether you are buying your first car, starting a new business venture or buying your first property, insurance is something that everyone has to deal with. While insurance might feel like an unnecessary thing, it is often a legal requirement (depending on the type of insurance you need). You don’t want to be stuck in a situation where you have to pay thousands for an incident because you do not have the right insurance policy.
If you are looking for an insurance policy, you might believe that the use of a middle man is a hindrance and not a help. In this case, you turn to price comparison sites to look for the cheapest policy. This may not always be the best way, as some policies that you will be offered may be fairly generic. You could also be underinsured, which could compromise a claim process. So why use an insurance broker?
In this article, we will cover five reasons why using a broker might be the best choice.
Because insurance brokers are independent companies, they are not tied to any one insurer. They can offer impartial advice tailored to your personal and business needs. A chat with you is usually all they need to find a suitable policy from the insurers they work with. This means you get the right cover at the right premium. Also, you probably do not have the time to study the technicalities of, say, professional indemnity insurance. However, a lot of brokers have, and that makes them an expert. You benefit from that expertise when they speak to you about the cover you need. That same expertise extends to mid-term changes and queries, too, with the bonus of personal service in some cases. That is not always the case with large direct operations or comparison sites.
Insurers can only offer you one policy: theirs. This is often written for the mass market, and it will not be tailored to your specific needs. Multiple business activities, high-value property or exceptional contract requirements could mean you need something different. A broker recognises extraordinary requirements, identifies the cover you need, arranges it with a suitable insurer and ensures that your documents are correct. They will also tell you if you are already covered by your existing policies so you don’t overlap. Certain insurances such as professional indemnity and public liability insurance can sometimes be complex; if you are unsure of where to start, asking an impartial expert could prove useful.
Insurance policies can be challenging to understand because covers are technically spelt out. Getting an insurance broker who understands the details and can explain each policy is a huge step into finding the right insurance. For example, if you are insuring your home or starting a new business venture, trying to understand terms like uberrimae fidei, subrogation and indemnity could be confusing. An insurance broker cuts through the professional jargon to determine which policy will protect your business and possessions. This means you can focus on decorating your home or making your business profitable.
This is probably one of the best reasons to use a broker. When the worst happens, you need all the help that you can get. If you need to make a claim, a broker might speak to loss adjusters and the claims departments to ensure the process is hassle-free. Also, brokers understand the technicalities of your policy, therefore they can argue your case in the event of a disputed claim.
Brokers can help point out the types of cover available and what cover you need. They also take the time to explain the fine print of your policy so you know what you are signing up for. Situations might change in future, and your insurance needs to reflect this. Brokers ensure that you continue to get the right cover at the right price.