Buying insurance for your business is not an easy task. This is mainly due to the fact that there are many factors to consider and many options out there. With so many different types of policies developed for business owners, whether you just opened your business, or you have been working for some time, and however small or big your business is, how do you know what to do? And on top of all that, you are probably aware of how much can depend on you choosing the right business policies, the right protection, and coverage.
Naturally, there are many ways to deal with this issue, whether it is by doing extensive research, talking to a lot of people who have some understanding on the subject, going through your connections, relatives, friends of friends, etc. However, the easiest and very prudent way to protect your business against all kinds of potential troubles and losses is to hire an insurance broker, considering how time-consuming owning a business can be, regardless of how small or big.
Why Do You Need an Insurance Broker?
Hiring insurance brokers may especially be a great idea for people who have just opened a business. When you are starting a business there are so many things to think about, and so much work to be done. In fact, whether you are someone who knows business and management, or you are an amateur trying to open a small restaurant, if you are starting a business for the first time, it may surprise you how many things you will need to do all at once. And while you may be ready and you may know a lot about a lot of stuff, asking for help from professionals can make a huge difference.
While buying insurance is entirely up to you, and you will ultimately decide what is best for you, the insurance broker is there to explain how the policies work, advise you, and help you decide. There are many reasons why you may want to have an individual experienced in the insurance industry in your corner, and many businesses that may benefit from this.
There are many different insurance policies you can get for your business: a business interruption policy, a sickness, and accident policy, a directors liability policy, and so on. Depending on your business, for the right coverage, you may require one or multiple policies, a simple or a very complicated policy. Insurance brokers will help you understand everything about the policy, and especially the exclusions and the limits. They can also find the most suitable insurer on your behalf if you do not have the time needed to make the research.
What Is Their Role?
The role of these experienced professionals is not only to find you the best business insurance policies for your company, regardless of its size or field, but also to build a relationship with you and your business, and invest in knowing all about it. For this, they will learn everything including everything about your facilities, your offices, the number of your employees, your expectations, your background, etc., and determine all potential threats to the business. This way they will help you select the policy that suits your needs best.
Essentially, they will have to learn everything about your business and the potential threats, losses, or interruptions in cash flow, because their job is to find a policy or policies that will ensure that your business can survive and succeed in the event of different possible scenarios. Some such examples include anything from business interruptions due to natural disasters or fire, potential losses, all the way to legal actions, liability claims, and so on. The broker will present you with their advice, explain everything about the policies they consider to be right for you, and help you select the best option.
They will serve as an intermediary between you and the insurance companies, using their extensive knowledge about insurance companies and all the different types of policies, coverages, and claims, and your specific needs. Your insurance broker will work in your best interest and they will negotiate policy coverage and pricing on your behalf. All of this will make finding an insurance policy for your business very simple and convenient, not to mention time-efficient.
While looking for the right business insurance policies is very demanding and hiring a professional to help with it is smart, it is not the only help you can expect from insurance brokers. In case of any issue, whether it is an interruption due to external factors, legal action, or any other problem when it is time to claim your insurance, insurance brokers can make the whole process easier and faster. At such time, the broker’s role is to be on your side and negotiate with the insurer on your behalf.
Note: Many businesses hire insurance brokers to find the right policies. However, individuals can also benefit from insurance brokers in many cases. For instance, if you are a landlord, you own multiple homes or cars or want to understand any kind of insurance policy you may need.
Are Insurance Brokers and Insurance Agents the Same?
While insurance agents and brokers are sometimes used interchangeably, the terms actually represent two different things. Namely, while independent insurance brokers work on your behalf, insurance agents are professionals who represent and work for an insurance company. They know all the products offered by their company and they sell them to individuals and businesses for a commission.
Similar to insurance brokers, insurance agents will help you understand the ins and outs of an insurance policy and select the right one for you, but they won’t represent you in the transaction, but instead the insurance company. Insurance agents may work for one company or several companies.