If you’re just starting your own business and are looking to put some insurance policies in place to protect it, you may be daunted by the number of options.
One decision you will need to make when it comes to insurance for your business is whether to use a professional insurance broker or buy direct from an insurer.
As with most decisions of this magnitude, it’s wise to be as informed as possible. The sheer number of insurance types that are relevant to small businesses can seem overwhelming — public and product liability, cyber, property, contents, machinery, plant and stock, business interruption to name a few.
If you’re unsure about what insurance types might be the best for your business, you will need to either deal directly with one or several insurers, or have a professional insurance broker act on your behalf.
Using a broker vs. buying direct from an insurer
When you’re purchasing insurance for your business, you can organise and purchase those policies yourself or you can have a broker do that on your behalf.
The role of an insurance broker is to provide you with advice that is particular to your situation; some brokers may even specialise in the types of insurance you are seeking. Brokers will find and compare quotes for your business, will help guide you through the process, and explain things about the policies on offer that you may not otherwise have noticed. Many brokers also help manage claims, which can save your business a significant amount of time, money and stress.
Purchasing insurance policies direct from the insurer also has some advantages. Sometimes it can be more desirable to have control over the process yourself. You may feel that you have a good understanding about the different types of insurance and decide your situation doesn’t warrant getting a broker involved.
While businesses can be similar, each business has unique challenges — what is right for your business may be entirely different to what another business needs. If you would prefer to have an insurance professional working on your behalf, be sure to contact your insurance broker, or contact the insurance professionals at iO2.
(Source: KnowRisk Insurance)