What does an insurance broker do? Most people would say that they act as intermediaries between the client and the insurance company. This definition of a broker’s role can put people off from using their services because they think they serve the interest of insurance brokers in the guise of professional advice.
In this guide, you will take an in-depth look at the roles and responsibilities of an insurance broker and why you need to work with one.
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Key Roles of an Insurance Broker
There are key roles and responsibilities that an insurance broker must fulfill. The following is an overview of these key roles and responsibilities:
1. Evaluate your company’s insurance needs.
An insurance broker will conduct a thorough evaluation of your insurance needs and align that with the existing policies available in the industry. Their goal is to evaluate current options and offer impartial advice on the best coverage from various insurance providers. Brokers can also negotiate on behalf of the company to get the right coverage at the best price.
2. Make sure your policy is updated.
Companies’ needs change over time, and so do their policy coverage requirements. For example, your company size has grown, or you branched out into a new business extension that entails a new set of risks. An insurance broker can assess these risks and recommend changes to your policy that ensure the highest level of protection.
3. Assist in processing your insurance policy and claims.
Insurance brokers have the expertise and experience in dealing with the insurance application process and filing claims. They can assist clients with this process to ensure a smooth and streamlined experience. Therefore, they can be of service to you even after you’ve purchased the policy.
4. Assist in the insurance renewal and ensure your protection.
As a business owner, your hands are full because of the many responsibilities that come with running a business. Therefore, it is easy to overlook the expiration dates of your insurance policies. When incidents happen, and your insurance policy has lapsed, there is a risk that these incidents could happen while you’re unprotected.
It is the responsibility of the insurance broker to renegotiate your insurance plan to ensure that they offer the highest protection at the most reasonable prices. Some insurance companies will allow a negotiation, especially if you’ve been a long-term client.
While you can negotiate with the insurance provider without a broker, you can leverage the expertise of brokers to get the best possible deal. Insurance companies and agents employ marketing tactics to get you to spend more on your insurance plan, even adding coverage that you don’t need or benefit from. Therefore, brokers are your best tools against these marketing tactics, so you can be informed about your options without fear of being taken advantage of.
How to Choose an Insurance Broker
Insurance brokers can be an individual or part of a company. When choosing an insurance broker to work with, choose brokers who belong to a legitimate company to ensure that you can get the best professional advice on your insurance options.
The first thing you must do is check for a license. The Australian Securities and Investments Commission (ASIC) regulates and issues licenses for insurance brokers and agents in Australia. Therefore, you must check if your chosen insurance broker or brokerage firm is affiliated with the regulating bodies to give you confidence about your choice.
When to Use an Insurance Broker
You must use an insurance broker when you need to purchase an insurance policy. They can offer expert guidance and professional expertise, so you are informed about your options. An insurance broker can guarantee that you have the best protection based on your assessed risks. They can also save you time and money, especially if the insurance broker specializes in your industry.
Ways that an Insurance Broker Can Save You Money
Can an insurance broker save you money? Yes, they can. The following are how they can help you save money:
- They can help you find the best insurance coverage at the lowest premium. If you were to choose an insurance policy based on the lowest premium available, the quality of your coverage might not be enough. Therefore, brokers make sure to balance both aspects.
- They can save you time in comparing various policies from different insurance providers. In the business world, time is money. Instead of using that time to compare insurance policies, you can use it toward growing your business instead.
- They ensure that you don’t get any coverage you won’t need. An insurance broker will help customize your insurance policy so you don’t pay extra for add-ons or inclusions that you won’t need.
- They can help you find deals and discounts from insurance companies upon the renewal of your policy. Brokers can also renegotiate your policies for the best premium possible.
