The benefits of using an insurance broker over a direct provider

Insurance brokers are intermediaries between the customer and the insurance provider. The customer contacts a broker who in turn searches for the best policies and prices from their partner providers. So what are the additional benefits of using a broker?

Solving problems at speed

Here lies the immediate advantage. The broker has spent many hours building and nurturing relationships with their partner providers.

This usually means the broker has direct communication with key decision makers within the insurance partners business. Here’s a real-life example of how this may benefit you.

One of our clients recently experienced a temporary halt to their cover following an accounts query from the insurer. The client immediately contacted us following the notification from the insurer.

Having dropped everything to understand the facts we contacted our insurer partner and got our client back on cover in one phone call.

On the basis that there were events lined up that very weekend it was very much a case of disaster averted.

Let us imagine an alternative scenario for a moment. What if the insurer directly covered the client?

In this instance following the accounts query, the client would be required to ring through to the insurance company navigating their way through automated phone systems.

In addition, the chances of a client meticulously understanding their often-lengthy policy wordings are often slim.

Therefore, communicating directly with an insurance provider for many can be a daunting and stressful task.

This is further complicated if the insurer operates in a call centre environments which are often located abroad.

Get a better quote

Contrary to belief it may be possible to get a better quote for similar cover from a broker instead of from an online solution dealing with insurers directly.

In fact, many of our clients have reported this after approaching our insurer partners directly. Usually, this is down to the level and scope of cover.

As we are a specialist broker, our policy wordings are bespoke meaning our clients receive bespoke cover.

Therefore, our clients always receive the right amount of cover to match their current business situation.

In other words, our clients can choose to pay only for what they need.

Understanding your niche

Many of our clients have felt a great sense of relief talking to us after directly approaching insurers.

The reason is many insurers repeatedly fail to understand specific niches. For example, one of our clients is a venue stylist.

However, her previous insurance company classified her as an upholsterer which is a completely different trade with completely different exposures.

Here lies a potential problem. If our client made a claim, the insurer would ask where she was at the time of the incident.

Upon detailing she was styling a venue for a wedding, her insurer could then ask her to justify why she was doing that.

From the insurer's point of view, they would think ‘why is an upholsterer styling a wedding?’ This could create additional stress at a time that is already time-consuming.

Using an insurance company who doesn’t thoroughly understand your niche profession can be problematic not only from a pricing viewpoint but also when claiming. Remember, an insurer has to ask questions in order to ensure the claim is legitimate.

Any discrepancies in your answers against your policy wordings may invalidate your insurance leaving you with additional consequences such as footing the claim bill personally thus threatening your business.

Concluding thoughts

If you have a niche wedding business, talking to a specialist insurance broker is highly recommended for the reasons detailed above. As usual, it’s always a good idea to do your research.

However, don’t just compare the price, ensure you are also comparing the policy wordings and level of cover.