Finding the right insurance broker can be a difficult task, especially if you’re unsure why you need one and what your options are. Our friends over at AJB Insurance have put together a great piece on everything you need to know about insurance brokers.
Why use an insurance broker to purchase insurance?
An insurance broker can save you time, money and worry. Just like an accountant or lawyer who provides you with professional advice, based on years of training and experience, a qualified broker can do the same with your insurance.
When arranging insurance, many people take shortcuts without seeking proper advice, understanding the fine print or considering whether they are getting value for money. Often they are disappointed when their insurance doesn’t come to the rescue.
Whether it’s home, car, business or professional indemnity insurance, brokers provide advice and assistance to make sure you are properly protected.
Using a broker doesn’t necessarily cost more. Often it costs less because brokers have knowledge of the insurance market and the ability to negotiate competitive premiums on your behalf. A broker will also explain your policy and any special situations you need to watch out for. Furthermore, a broker is obliged to advise you of fees charged for services provided to you.
An insurance broker’s foremost duty is to his or her client. An insurance broker works for you. That’s the reason.
How to select a broker
You will benefit most by developing a close business relationship where the broker understands your future plans, the associated risks and how you like to do business.
Before you start, consider the following:
Do you need business or domestic cover?
Are you looking for special services such as special risk management services or particular technical advice?
Do you prefer to work with a small or large brokerage firm?
If you are a business, you might then ask the broker to make a presentation. At the presentation you should look for:
- Business compatibility
- Level of commitment
- How they propose to solve your insurance problems
- The competitive advantages of their firm over any others you may be considering.
Once you’ve made a decision, include a review period in the relationship with your broker. This allows both parties to discuss issues of concern and see if the relationship is working.
To read the original article and for further insurance updates and information, please check out the AJB Insurance blog.
If you would like to speak with a knowledgeable and experienced financial planner with regard to your insurance needs; please don’t hesitate to get in touch with the team at Fortis Financial Planning. You can reach us on 02 9267 0108, or via info@exemplary-financial.flywheelsites.com.
