Why use a Broker?
Why use an insurance broker to purchase insurance?
An insurance broker can save you time, money and worry. Just like an accountant or lawyer who provides you with professional advice, based on years of training and experience, a qualified broker can do the same with your insurance.
When arranging insurance, many people take shortcuts without seeking proper advice, understanding the fine print or considering whether they are getting value for money. Often they are disappointed when their insurance doesn't come to the rescue.
Whether it's home, car, life or business insurance, brokers provide advice and assistance to make sure you are properly protected.
Using a broker doesn't necessarily cost more. Often it costs less because brokers have knowledge of the insurance market and the ability to negotiate competitive premiums on your behalf. A broker will also explain your policy and any special situations you need to watch out for. Furthermore, a broker is obliged to advise you of fees charged for services provided to you.
An insurance broker's foremost duty is to his or her client. An insurance broker works for you. That's the reason.
How to select a broker
You will benefit most by developing a close business relationship where the broker understands your future plans, the associated risks and how you like to do business.
NIBA offers a service to help Business and Consumers find a Broker they can trust. To find a Broker in your local area, conduct a location search on your postcode.
Before you start, consider the following:
Do you need business or domestic cover?
Are you looking for special services such as special risk management services or particular technical advice?
Do you prefer to work with a small or large brokerage firm?
Before you select a broker here are some important questions you need to answer especially when looking for business insurance:
Ask the brokers you've contacted to give you an expression of interest or a proposal. From the expression of interest you'll get a feel for which one may be right for you. This should detail:
- Their qualifications and registration with ASIC or associations (are they a QPIB or NIBA Member firm?)
- Who would service the account
- Their experience with your type of business
- Their range of services
- The size of their “typical” client
- How they bill for the work
If you are a business, you might then ask the broker to make a presentation. At the presentation you should look for:
- Business compatibility
- Level of commitment
- How they propose to solve your insurance problems
- The competitive advantages of their firm over any others you may be considering.
Once you've made a decision, include a review period in the relationship with your broker. This allows both parties to discuss issues of concern and see if the relationship is working.