Wondering why it is better to use an insurance broker? Do you think you would be better off buying insurance directly from the companies which sell it? This article weighs the pros and cons of choosing an insurance broker over direct insurance purchase for your business direct.
When it comes to seeking business insurance, there are two ways to do things. You can either call insurance companies directly and try to get the best deal, or you can go through an insurance broker, who will tailor the package directly to your needs.
Both options are viable but which is right for your business? This article explores all.
Choosing an Insurance Broker Vs Buying Direct
Buying insurance for your business is a tricky business. The insurance world is littered with companies selling packages that clients don’t necessarily need. It includes all manner of add-ons and optional extras.
Not only are there insurance options which you may not need to navigate, there are also a myriad of questions to answer. From questions over how you store your fleet at night to questions about how your premises are secured. Little things, such as the way your shutters work or which kind of POS system you use, can all factor into raised insurance costs.
You can choose to navigate this world on your own but we do not recommend it. Instead, choosing an insurance broker vs buying direct might be the better option both for business and for personal insurance.
An insurance broker is a type of financial advisor who works exclusively with insurance companies to land you the best bargains. Here at Falcon Insurance, we have a network of connections throughout the insurance industry, each of which specialises in a different area of insurance. We can therefore broker insurance deals on your behalf, cutting out the parts of the premiums which you don’t need and effectively saving you money.
The Advantages of Using an Insurance Broker
There are many advantages to using an insurance broker. You will receive expert knowledge of the insurance field for a similar price. You will find it far easier to source the correct premiums for you given that you have this expert knowledge.
An insurance broker can help you chop and change the parts of policies which you don’t like. This means you and/or your business won’t be stuck paying for premiums which you don’t need. For example, contents cover could be included with your business insurance and therefor you would not need to pay for it again. However, without the broker to spot the mistake, you might just pay a second time.
Pros of Using an Insurance Broker:
- Expert knowledge at your disposal
- Chop together a tailored policy
- Don’t pay for what you don’t need
- Easier to find specialists for niche businesses
- Insurance broker can handle your claims for you
Cons of using an Insurance Broker:
- You have to deal with a third party
The Advantages of Direct Purchase Insurance
You could alternatively choose to buy your insurance directly from insurance companies. This involves comparing and contrasting policies, and a lot of legwork. This all takes time away from your business activities and your day.
Nevertheless, there are both pros and cons of buying directly from the insurers. Pros include that you cut out the middle man, although this will not necessarily save you money. Without the guidance of an insurance broker, buying direct can result in your overpaying, or paying for insurance premiums that you don’t need.
The Pros of Buying Insurance Direct:
- You don’t need to involve a middle man
The Cons of Buying Insurance Direct:
- No expert to guide you
- No insider industry knowledge
- You might pay premiums on the same cover twice
- You don’t get a personalised service
- Finding the right product for you is more difficult
What’s Best: Using an Insurance Broker Or Buying Direct?
So why use an insurance broker vs buying direct? The advantages of using an insurance broker far outweigh the disadvantages. Benefits of using an insurance broker include a personalised service, access to multiple quotes, and expert advice which you can’t afford to miss out on. Direct insurance purchase, however, can cost you more than you might think.
Direct insurance purchase has its merits but without the guidance of a professional in the insurance field, you can be sure that you will put a foot astray. We recommend that you don’t go down this route unless you have industry-backed experience. Otherwise, get a quote today for guidance towards your new insurance goals.
