You might pay a bit more to use the services of an insurance broker compared to buying your insurance directly from an insurer. Is that extra cost worth it? Here are a few reasons why it might be a good investment.
1. Do you really know what you are buying?
Have you read the policy terms and conditions, extensions and exclusions? A broker will have. That’s their job. They can tell you which policies offer which benefits depending on your situation and needs. The one they recommend will be the best value in terms of the cover provided for the price and claims service. A broker that specialises in the construction sector is an ideal partner for your business.
2. Claims can be complicated, do you want to battle an insurer on your own?
Brokers do it every day on behalf of their clients. Some claims are easy but often in the construction sector, with contract works, liability and issues around faulty workmanship they can get very complicated. Do you have the expertise and experience to turn a “no” into a “yes”? Do you have the time to do this? Brokers have people they can call on to review claims if the insurer is not playing ball, and they can leverage our relationships with insurers to get the right result. Can you?
3. Can you obtain free expert legal advice to support your claim?
Many brokers can. Take Builtin for example, as part of the Steadfast group we have access to a legal helpline to seek a second opinion on complicated claims. Steadfast’s claims triage system means we can escalate any claim that we believe has been wrongly assessed to the very top of the insurer’s organisation. Through our membership of the Insurance Brokers Association we can also access a panel of lawyers to obtain informal legal opinions on tricky claims.
4. Do you have the time to compare quotes from multiple insurers, not just on price but on coverage and claim service too?
A broker does, that’s their job. And they should be able to make the process as quick and painless for you as possible.
5. Do you know what you don’t know?
When it comes to risk a broker does know what you don’t know. They know what can catch you out when arranging insurance, what cover benefits to request, what policies are available and what risks you’re exposed to.
6. Do you check every year to make sure your cover is adequate and update it if things have changed?
It’s a broker’s job to help you with this, to ask the right questions and make recommendations for you to consider.
In a Nutshell
What’s that saying: the cheapest quote often leads to the most expensive job? Or something like that. The same can be true with insurance. It may cost you less up front, but you’ll end up paying the price when it comes to the crunch. A professional, experienced risk adviser is a great asset for any business and will save you money in the long run.
The information presented in this article is general in nature and not intended to be financial advice for individual situations. You should speak to an expert about your specific circumstances and needs.