Risk & Insurance
Do you need a broker?
Top reasons to use a broker for your business insurance.
3 min read Last updated 24 Sep 2020

Top reasons to use a broker for your business insurance

You have your personal car, home and CTP Insurance bundled with the one insurer, so why not add your business insurance to that mix as well, right? However, when insuring your business, it might not be so simple. The industry you’re in, the laws governing the industry, and the nature of your business will all impact on the coverage you need to adequately protect your business.

An insurance broker is there to independently advocate and act in their client’s interests. Working on your behalf, your broker can ask the right questions to get a thorough understanding of your industry and negotiate with insurers to get you the best possible outcome. A broker may assist you in obtaining a better deal overall.

Subscribe to SME Talk


Identify the right cover

The best broker is the one who takes the time to understand your industry in as much detail as possible, and thoroughly assesses all the potential risks. A broker should carry out a needs analysis to identify gaps or changes in your requirements (both when taking out insurance, and at each renewal). Your broker may also be able to introduce you to additional services such as workers compensation specialists’ and asset valuation services.

 

Negotiate better deals

Brokers often have access to a panel of  insurers, who have been screened to ensure they offer the best coverage and value for your respective sector. The coverage and deal you get is often also impacted by your broker’s relationship with these insurers. A good broker should be comfortable to negotiate with insurers on your behalf to ensure you’re getting the best outcome.

A broker can help you manage your claim with the insurer. This not only means managing or helping you with all the paperwork to submit your claim, but may also include lobbying and challenging insurers if the broker believes that a denied claim should in fact be covered.

Managing claims

Insurance goes well beyond simply paying a premium – you often see the true value of it only when something happens. For this reason, if you do have an incident which you need to claim for, you’ll want to make sure you’re accurately portraying the incident and managing all the paperwork without any gaps so you’re getting the most out of your cover. 

A broker can help you manage your claim with the insurer. This not only means managing or helping you with all the paperwork to submit your claim, but may also include lobbying and challenging insurers if the broker believes that a denied claim should in fact be covered. For this to be possible, your broker not only has to have a detailed understanding of insurance coverage and the exclusions that apply, but also a healthy relationship with insurers.


Access to premium funding

For some small business owners, cash flow may be a concern which can make paying your insurance premium very difficult. If you require payment plans to help with funding your premiums, a broker can also help arrange access to this. If there are additional fees & charges associated with doing this, your broker should also explain this to you upfront.  


Broking isn’t what it used be

You might be thinking by now that with the diverse role brokers play in the insurance process, it probably takes a significant amount of time to get insurance through a broker. However, nowadays, brokers such as Aon have been able to leverage knowledge, experience and relationships with insurers to provide a seamless service - we’ve scanned the insurance market, and negotiated with insurers to design ready-to-buy policies tailored to specific sectors. Because we’ve already shopped around for you, you can buy insurance in a few clicks and be sure you’re getting the best overall value for your business needs.

Subscribe to SME Talk


This information is intended to provide general insurance related information only. It is not intended to be comprehensive, nor does it, or should it (under any circumstances) be construed as constituting legal advice. You should seek independent legal or other professional advice before acting or relying on any of the contents of this information. Aon will not be responsible for any loss, damage, cost or expense you or anyone else incurs in reliance on or use of any information contained in this article.