Finding the right insurance cover can be daunting for even the most experienced business owners. There are many intricacies that organizations must navigate, and the risk of uninsured is an issue that requires careful consideration. There are over 5000 providers of insurance solutions in United States, most with a multitude of policies available. With so many policy options and the financial security of their business at stake many small business owners choose to use an insurance broker. We’ve assembled this white paper to help you understand what a broker does and if working with one is right for you.
NAIC data states there were 5,977 insurance companies in 2016 in the US (including territories), including P/C (2,538), life/annuities (872), health (858), fraternal (85), title (55), risk retention groups (247) and other companies (1,314)
Businesses often build strong relationships with their brokers, and as a trusted professional they often become an integral part of the team.
First Underwriters Insurance Brokers are happy to talk. We have years of experience providing the best insurance advice and solutions to clients and helping them get the best outcomes when claims arise.
A broker’s job doesn’t end when they provide you with an insurance solution. Once an insured event does occur, brokers provide additional assistance, managing the claims process on behalf of businesses and providing a point of contact at every stage.
Rejected or prolonged claims can have a devastating impact on your organization. These situations are where claims support from brokers is invaluable.
Recognizing possible risks, researching the available insurance coverage and finding policies that fit your unique requirements can be complex and time-consuming. Enlisting the services of a broker means you can leave the task of researching your business’s insurance to an expert, while you focus your time and energy on what you do best – running and growing your firm.
There are a multitude of risks that your business must address to avoid costly unforeseen circumstances. Property and stock damage, commercial vehicle losses, business interruption events and statutory liability are just some of the issues that organisations need to consider when selecting a comprehensive insurance solution.
The business environment keeps changing. New risks like cyber crime or law changes such as the Health & Safety at Work Act will have an impact on your business and insurance cover. Brokers are insurance professionals and are experts at understanding the risks to your business.
Working with a broker can provide additional security ensuring that the type and level of cover you have is right for your business and that you aren’t unintentionally at risk.
This point relates directly to a broker’s insights into the insurance sector. Along with having an in-depth understanding of the industry as a whole, brokers also have knowledge of sector-specific risks and how policies respond to claims situations.
This expertise can then be applied to your business in order to ensure you have the right balance of policies and are well informed of what you are and are not covered for.
A good broker will take care of your claim from beginning to end, managing the entire process and working as an advocate on your behalf.
With intimate knowledge of the how insurance operations work, a broker can ensure your claim is managed efficiently and quickly, with a better outcome than you would achieve on your own.
Without a broker, your business will likely receive an off-the-shelf insurance product rather than one that is tailored to your specific needs. This could leave you with gaps in your coverage.
For example, you may have a material damage policy that covers you for flood damage to property, but you may fail to take out the right level of business interruption insurance to account for profit losses you suffer while carrying out repairs.
A company’s duty of disclosure and similar policy requirements can be difficult to navigate without a broker’s advice.
Organizations must provide full and frank details of their business to allow insurers to set the terms and conditions of the policy. Failing to give the correct information could result in your insurer refusing to pay part or all of a claim, while some instances of non-disclosure may be considered fraud.
Your broker knows the types of evidence or proof you may be required to provide at claims time and will ensure you are covered appropriately.
Businesses change year to year and your insurance needs to be kept up to date to reflect this. For example higher stock levels, increased creditors or changing staff numbers all affect your business insurance.
When amendments are required or a policy is nearing expiration, brokers can reassess a business’s needs and negotiate new terms to ensure you maintain comprehensive coverage. While the risks are significant, brokers can help to offset them by offering dedicated advice for your business.