We will discuss 6 reasons why you must use an Insurance broker, but first, we must look at who is an Insurance broker.
Who is an Insurance Broker?
EBM states that:“An insurance broker is a professional adviser who is an expert in insurance
and risk management. They work on behalf of you, the client.”
They stated that it is worthy to note that “An insurance broker works for you, they don’t “sell” insurance”.
Why are they important and valuable. Here is the reason why an Insurance broker is an indispensable tool for you as far as insurance is concern.
The insurance sector is one which is filled with information which maybe confusing and not clear to most of its clients or potential clients.
It is common practice for one to come across advertisement which can be described as misleading.
Instances like this can posed a serious challenge to most clients and that is when the services of an Insurance broker comes in handy.
They will come in to help provide you with an objective advice which will be valuable in your quest to take an insurance. The good part is that they are always interested in the customer’s interest.
An Insurance broker is a specialist in “insurance and risk management”.
What are the different types of Insurance brokers?
There are several types of insurance brokers. Basically two types of Insurance brokers exist. They are retail and commercial insurance brokers.
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Who is a retail Insurance broker?
Godwin University defines a Retail insurance broker as one who “act on the behalf of companies and individuals and offer health, home, travel, and auto coverage”.
Who is a Commercial Insurance broker?
A commercial Insurance broker on the other hand is a broker who has specialty in a specific industry. It could in a sector like oil and gas or in health.
They deal with issues that may be complex in some cases like equipment in the area of either failure or damages.
Depending on the type of Insurance broker, you are dealing with, the following are a summary of their duties.
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To advise their customers on everything related to the policy (or policies) that they need to take out: insurance companies, prices, what guarantees the policy does and does not cover, compensation payable, the advantages and disadvantages of each type of policy, whether or not to include certain additional or customised clauses, etc.
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To act on behalf of the customer at all stages of the procedure: contracting the policy, the choice of clauses, customising the policy, negotiating policy prices and compensation, reporting incidents and processing claims, etc.
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To protect the interests of customers, taking care of their assets at all times.
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To analyse the customer’s real needs and, depending on what they are, to offer the most suitable product from the range of options that they handle.
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To compare market prices regularly (as they are constantly being changed and updated) and to offer the customer the policy with the most competitive price, provided that it includes the cover needed.
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To warn the customer about unclear conditions and misleading advertising, expressly pointing out exclusions that appear in the small print of the policy’s terms and conditions.
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To support the customer at all times, including the renewal of their policy, advising them whether or not to continue with the same insurer.
6 reasons why you use an Insurance broker
Having look at who an Insurance broker is, their roles and the types of Insurance brokers, we will now look at 6 reasons why you use an Insurance broker.
The first reason why you must use an Insurance broker is that they use their knowledge to advice you on areas of cover you might not have considered for your business.
These areas of cover if you did not pursue could have expose your business to a major risk.
The second reason to seek the services of an Insurance broker is that they look around for Insurance covers and services for you and this free up your tight schedule of doing this yourself. You can then comfortably concentrate on working and building your business.
Their role of going beyond the purchase of an Insurance policy to the point of performing a daily monitoring on the adequacy of the coverage makes the services of a broker a must.
They look at after purchase issues like coverage limits and policy terms limits as the market conditions may fluctuate from time to time.
The fourth reason why you must use an Insurance broker is that they will support you in settling your claims quickly and efficiently.
Insurance Brokers depend on their relationships with Insurers to help procure for you a better cover and not that alone, it may also come at a good price.
The last reason to use an Insurance broker is that brokers serves as your advisor and consultant. They come handy in helping you to make right decisions for your business.
