WHY YOU NEED AN INSURANCE AGENT OR BROKER

Insurance doesn’t have to be complicated, but it can be difficult to understand what is available, what it will do, and when it will do it. All too often, policies can appear to be created equal when they are far from it. There is the issue of cost which many customers consider before purchasing insurance, yet it should not be used as the only guide as to whether a contract of insurance is good or bad. There is also this question of claims. Isn’t this what you are paying for? How do you navigate through the claims process?

This brings us to the question: Why use an insurance agent or broker?

Professional Advice

There are hundreds of different insurance policies in the market, and they are usually complex documents, full of insurance terminologies and legal jargon. Although they may look similar, you shouldn’t judge the book by its cover as a trained eye is needed to understand what is covered and what’s not covered fully.

Most businesses require some tailoring of their policies to ensure they meet their specific requirements. This could perhaps be to cover a legacy issue, accommodate certain terms of business or sub-contracted arrangements etc. An agent or broker will undertake these tasks, reducing the burden on you to be the insurance expert. Buying through an insurance agent or broker therefore gives you an expert’s eye and the tailoring to fully protect your business, so you have peace of mind.

Choice – One Stop Shop

Insurance agents and brokers have full access to the insurance marketplace and therefore offer you a choice – a one-stop shop if you like. They are not biased towards or against any particular provider and will pick the best option for their client, every time. Direct purchase of insurance from an insurer limits your options. An insurer can only offer their particular product range which does not provide choice to the consumer.

Most insurers also prefer this option. As insurance experts, they both speak the same insurance language as the underwriter. It’s therefore much easier and more cost-effective for the insurance company to work with an agent or broker than it is dealing directly. This arrangement also justifies lower premiums as well as the cost of agent or broker commission.

Value for Money

Contrary to popular belief, using an agent or broker is almost always cheaper than going directly to an insurance company. This is because this is what they do and therefore have a good understanding of the market and the best rates available. Value for money comes down to more than price when picking an insurance provider and while they may well get the lowest price, the focus should be on the true value for money i.e. benefits to our customers.

Agents and brokers negotiate premiums with insurers using a combination of technical arguments, commercial weight, and of course business relationships. Trust and respect is an important part of the relationship between the agent or broker and the insurer and can make a big difference to the final terms agreed.

Claims Service & Advocacy

 In this most important area of all which deals with the key reason for the purchase of the product in the first instance agents or brokers guide the customer through the claims process and effectively manage the claim on the client’s behalf, taking away the burden and stress of claims handling from the client.

And wouldn’t it be marvelous if the insurance company willingly accepted every claim notified? But the reality is that well over 50% of commercial insurance claims are challenged by the insurer in some way. An agent or broker will help remove any unnecessary or unfair ‘reservations of rights’ to ensure your claim is fairly accepted and paid for by your insurer. They are always working on your side to achieve the best possible outcome on claims.

Market Service Standards

As indicated above agents and brokers have access to the entire insurance marketplace. They know their products, risk appetite, and service levels and as such, they can advise on the best service provider, best cover, and the best terms from the most suitable provider.

A direct provider can only advise on their products and as a result the consumer is not getting a full picture of products available in the market. The consumer also totally depends on whatever service level the provider offers.

Conclusion

To summarise, businesses need insurance agents and brokers to advise them on risk and insurance as much as they need an accountant to advise them on their accounts or an advocate to advise on legal matters. The agent or broker service is highly cost-effective and if you choose the right one, they will be an essential part of your business advisory team. A good insurance agent or broker will give you peace of mind.

That’s what Assurein Insurance offers you – EXPERT ADVICE. With us as your partner, you can be confident that the insurance you have will protect you and your business in the event of a loss. We connect your financial risks with the most suitable protection, adjust your portfolio to changing circumstances, and manage claims on your behalf.