How insurance brokers protect small business growth
Posted on September 17, 2024 | by | Posted in Insurance
Unlike larger businesses, small businesses do not have the scope to individually employ experts in each administrative field to support business requirements, so it is necessary to outsource certain duties including finding the right insurance policies. How insurance brokers support small business growth is a little more complex than simply finding the cheapest option available. Enlisting a broker will also ensure full regulatory compliance, appropriate coverage for your operations and ongoing support for any claims or adjustments that may be required to your coverage due to growth or legislative updates.
A broker’s duty
Insurance brokers expose your business to a catalogue of insurers they have researched on your behalf and who have proven effective with other clients, saving you the risk of undertaking coverage with a company that may not have the appropriate backing or history to be considered reliable. How insurance brokers support small business growth extends beyond finding the best policy with the best insurer for right now, it also includes ongoing support and future updates as and when requirements change, so you will be provided with recommendations that will cover not only the most appropriate insurance company for your current situation, but will also take into account your future needs.
Regulatory changes
Most small businesses do not have the scope within their staffing budgets to employ someone dedicated to researching and remaining up to date with regulatory or legal requirements and changes within the insurance industry. This is where a professional insurance broker shows they are far more than simply an insurance sourcing agent. They will advise and review your current insurance regularly to ensure ongoing compliance with any legal or governing body requirements within your industry. Should changes be necessary, any advisable amendments will be put forward for your consideration to continue your full compliance.
Company growth
How insurance brokers support small business growth is a multi-faceted topic. By providing you with the most appropriate insurance to protect your company from anything from natural disasters to cybercrime, you are free to concentrate on growing your business. As your business continues to expand, your insurance broker will monitor and advise on any changes that may be required to meet your company’s growth, thus supporting your small business throughout its operational cycle and relieving you of the time-consuming responsibilities of keeping abreast of your insurance needs.
Ongoing support
Most would consider that once their insurance is in place, a broker’s work is done. This is not true of a reliable and trustworthy broker. Ongoing support is essential to ensure that the insurance you have in place remains appropriate for your company with anything from a workable claims process to mitigating risks that may have arisen after taking out your insurance policy. How insurance brokers support small business growth in these instances is a great benchmark indicator of just how effective your insurance broker is. Essentially your broker is your point of contact should any insurance-related issues arise such as difficulty in dealing with your insurer through to changes in the scope of insurance required.
Regular checkups
Once you have enlisted with a broker, you will find they will reach out to you once a year, at a minimum, to conduct an insurance review. This is to ensure your business, as it currently stands, is still covered effectively and also to allow for comparisons with alternative insurers that may have issued more attractive options since the last time your insurance was looked at. A lot can happen in a year, and this is how insurance brokers support small business growth through ongoing engagement and monitoring of your insurance needs.
Broker vs Agent
An agent is typically contracted by one or two insurers and is constrained to offering only their contracted clients for your consideration. Opting to enlist with a broker means you are working with someone who is paid by commission, meaning they are free to work with as many insurance agencies as possible to find the absolute best fit for your company. A broker can also negotiate directly with several insurers to ensure you not only have the most attractive premiums but also the precise coverage required to protect your business from any unforeseen events that could seriously impact your success.
A broker’s catalogue
When considering how insurance brokers can support small business growth, consider how their catalogue of insurers has been compiled. Usually, many years will have been invested in the research of various insurance companies including their performance levels, types of insurance offered, which industry they are most suited to, customer service levels and years of operation. Your small business growth is dependent on being appropriately protected throughout your growth cycle and a broker’s catalogue opens your business to every aspect of insurance required with the confidence you will be enlisting with a proven insurance company.
A broker is not just a catalogue
Outside of insurance company knowledge and what each company offers, a broker also keeps up to date with industry requirements and legal obligations. This means you are alleviated of the time-consuming task of constantly researching to ensure your knowledge is up to date and you have the appropriate measures in place for your business. A reliable broker will ensure that you are aware of any significant changes that occur during your annual cycle and provide a timely review of your insurance at an earlier date if needed.
Selecting the right broker for you
As with many services in today’s market, there is a wide range of insurance brokers to choose from, so just how do you determine which broker is best for you? The very first question you will need to address is if they hold an Australian Financial Services License. Once that is established, take a look at their specialities, reviews and reputation. If all of these seem appropriate for what you envisage will suit your company, the final consideration would be if they are approachable and a good fit for you to work with. Just as brokers shop around for your perfect insurance solution, you too should shop around for a broker. Enlisting with dependable, reliable and professional brokers such as Matrix Insurance will ensure the best outcomes. Contact us today to discover the benefits of engaging with the right insurance broker for your needs.
