Let’s cut to the chase. What benefits do you get when you use an independent broker to place your insurance? The question came up when speaking to a friend who was starting her own business. Would a broker be interested in small start-up like hers and wouldn’t it be quicker, cheaper and easier just to sort it out herself? In short, no, and here’s why.
Understanding your risk exposure
No matter whether you’re a fledgling start-up, a small community charity or a large national corporation, the nature of the risks you face change continually. It’s difficult to keep up with evolving market dynamics and to make sure you comply with the mandatory demands placed on you by new legislation and regulations. A broker will keep you on the right side of the law and ensure you don’t overlook any required cover.
They’ll also give you a steer on how your risks might be changing and whether your insurance is in step with these changes. For example, working from home, at least for part of the week, has become standard for many people. But it also changes your risk profile in terms of things such as cyber security and clients attending meetings at your house. Standard home insurance simply doesn’t give you the cover you need for many of the risks associated with working from home. And if you don’t make the appropriate changes, you could find yourself uninsured if something goes wrong.
Perhaps your organisation has started offering a new service or changed the way it uses its commercial premises. If so, have you assessed the risks these changes create and are they covered by your existing insurance arrangements? An independent broker will be able to tell you and, if necessary, explain exactly what additional cover you need.
Sourcing suitable cover
Although the personal and micro-SME markets have become increasingly commoditised, it’s important to remember that your risk still has its own distinct features. For example, how many voluntary, charitable and not-for-profit organisations are a carbon copy of one another? Each and every one is different.
To be sure your insurance will be there when you need it, you also need to be sure you’ve got a policy that accounts for the unique aspects of your operation – and that requires specialist insurance expertise.
In addition to understanding your organisation’s idiosyncrasies and being able to assess exactly what cover you need, a broker will also have access to insurance options that you don’t.
Some providers will only work through brokers, and this is particularly true for specialist policies and schemes tailored towards niche markets, such as the third sector. In many situations, clients simply can’t get cover from the mainstream market and it’s these specialist providers that come to the rescue.
Time saver
Finding the right cover takes time, especially if you don’t have access to the providers that can actually offer you a policy. I’ve spoken to various clients who found themselves going round in circles trying to find an insurer, having been continually foiled by specific conditions and exclusions. And this time comes at the expense of doing your day job.
A broker will find and offer you the best options available in the market and talk you through their respective merits. They’ll also know what you can expect from different providers in terms of service. And knowing what sort of experience you’re likely to get in the event of a claim is a major factor in deciding what insurance policy to buy.
If you have to make a claim, the professionalism, expertise and support offered by a broker is invaluable. It can obviously be very stressful if someone breaks into your premises, steals your equipment or accuses you of professional negligence. And if your IT system is hacked, knowing what practical steps to take can be daunting.
A broker will guide you through the necessary actions and make sure you get the assistance needed to mitigate the loss. They’ll also ensure you get the most out of your policy in terms of the cover it provides. In many cases, policyholders aren’t aware of either the practical support offered by their insurance such as access to expert consultants, or of cover provided for certain costs associated with the loss.
Squeezing every ounce of value out of the policy can make a huge difference in mitigating the financial and operational impact that a loss has on your operations – especially if it’s a large and complex claim.
Risk partner
It’s easy to think of insurance as something you only deal with at renewal or when you make a claim, but the more you can build risk management activity into your core, ongoing activities, the more resilient you’ll become as an organisation.
If you foster an ongoing dialogue with your broker, you can create a partnership through which you continually develop your knowledge of the risks faced and implement measures that help you avoid them causing problems.
This will empower your organisation to become more resilient and more adept at understanding and adapting to the environment in which it operates.
Of course, you could arrange your own insurance programme, but these are just some of the benefits you’d be missing out on. If you would like to talk to Keegan & Pennykid about getting a quotation to protect your organisation, please contact us on 0131 225 6005 or email enquiries@keegan-pennykid.com
