If you run a business, commercial insurance is a fundamental tool that safeguards you from unexpected risks. Unfortunately, purchasing a commercial insurance policy isn’t always a straightforward process. Due to numerous variables and the dynamic needs of different businesses, commercial insurance policies can be a little complex, so it is always worth seeking the advice of someone who has a deep understanding of the industry. This is where commercial insurance brokers come in. Today, we are going to provide you with a quick rundown of what to expect if you are a business owner seeking insurance. Hopefully, we can help you make some of the most crucial decisions in running a safe and successful business.
What is Commercial Insurance?
To start, let’s go over what commercial insurance is. These policies encompass a vast range of protection depending on the specific needs of each business. Here is an overview of what you can expect from a commercial insurance policy:
Public Liability – This is an essential component for most businesses as it covers claims related to third-party injuries or property damage.
Professional Indemnity – This protects you against claims of negligence or when duty is breached.
Workers Compensation – This is mandatory for every Australian business, covering all work-related injuries.
Business Interruption – If a business loses income due to unforeseen circumstances, this can help them recover.
Commercial Property – This will provide coverage for all physical assets of the business, such as buildings, vehicles, equipment, and stock.
Understanding the Role of a Broker
As we mentioned before, the application process and terms of commercial insurance can be a little complex and extremely easy to misinterpret. A commercial insurance broker will help by acting as an intermediary between your business and the insurance provider. They will provide a comprehensive assessment of your needs and have access to hundreds of different providers, enabling them to find a solution that aligns with you. Additionally, they are there to provide professional advice whenever you need it and will be able to assist you if you ever need to make a claim. Basically, using a commercial insurance broker saves you money and makes your life much easier.
The Benefits of Leveraging the Knowledge of a Broker
When you leverage the skills, knowledge, and expertise of a professional commercial insurance broker, you will experience numerous benefits. Firstly, you will have access to a much broader network of insurance providers, allowing you to find the perfect one for you. You will also have the constant advice, support, and guidance of an expert throughout the entire process and beyond. It is far more likely that a broker will be able to find a tailored solution, ensuring that every one of your needs is taken care of. Furthermore, you will save time and money, and they will assist if you need to make a claim.
Five Steps A Broker Takes to Assess Your Insurance Needs
When you contact a commercial insurance broker, they will thoroughly assess your needs to determine what insurance providers are right for you and your business. Here is what you can expect:
1 – They will assess every risk of your business, from property damage to cyber threats.
2 – They will help ensure your business is compliant with all Australian regulations.
3 – They will carefully evaluate your existing coverage to identify anything that is missing or redundant.
4 – They will provide an estimation of how certain risks could impact your business.
5 – They will use their expert knowledge to determine your needs and mitigate all risks.
Why You Will Find a Better Deal with a Commercial Insurance Broker
Of course, commercial insurance brokers will have a better insight into the industry and be able to determine your needs more accurately. However, these aren’t the only reasons you will get a better deal with them. Insurance brokers have plenty of connections and are often able to negotiate a much better deal than if you were to purchase a policy on your own. They will also have access to exclusive deals that aren’t advertised anywhere else while bundling policies to save you even more money. They are highly experienced in commercial insurance and know everything it takes to reduce your insurance costs.
What are the Risks of Going Direct When Purchasing Commercial Insurance?
If you decide to go direct when purchasing commercial insurance, you are exposing yourself and your business to much more risk. First, you will have access to a limited choice of policies and products, which could potentially cost you much more money. Additionally, with the lack of expert guidance, it is easy to overlook something that could be detrimental to your business or waste unnecessary funds. It is also much more challenging to make a successful claim without a broker, so if you don’t have someone in your team who is an insurance expert, we highly recommend sticking with a broker.
What to Look for in a Broker you Can Trust
When browsing the market for an insurance broker of any kind, it is essential to choose one you trust. Look into their industry experience to ensure it aligns with your specific sector. Read reviews, gain an understanding of their reputation and check out their accreditations. A tell-tale sign of a bad commercial insurance broker is a company that isn’t transparent and communicative from the moment you contact them. This could potentially make it difficult to claim if you need to.
How You Can Help Your Broker do a Better Job
If you want a seamless experience with your commercial insurance broker, there are some things you can do to ease the process. Try to have all necessary and accurate information compiled upfront, be open about any changes or concerns you have, and ask questions about areas you are unsure of. Open communication and preparation are key to having a great relationship with your insurance broker.
Do You Need Help Deciding on Commercial Insurance?
If you need insurance but aren’t sure where to turn, Matrix Insurance Group is here to help. Reach out today, and we will be able to provide all the guidance you may need regarding your insurance. Commercial insurance is a big decision, and it must be done right, so make sure you go with a broker you can trust to get the job done.
