Broker v’s Direct? What’s best for your SME?

As a small to medium-sized business, you may be tossing up whether you need an insurance broker to help keep your company protected.

Large companies are often expected to be more inclined to seek out assistance from an insurance broker, while SMEs take care of their cover needs themselves. Recently though, Deloitte Access Economics prepared a report that details the risks of going it alone.

The findings

This research was commissioned by the National Insurance Brokers Association, with one key finding being that around 40% of SME clients were under-insured or not insured at all. Before enlisting advice from a broker, about 33% were paying more on their insurance. It was also found that 41% of SME clients agreed their claims process would have been “much harder” without their broker’s support.

One business owner who is quoted in the report says she made the right move to seek advice from a broker. “People don’t understand the risks of going to the standard, cheapest policy. They might have saved, but they didn’t know what they were covered for.”

The business owner has a farming property, which was severely damaged in the 2019 Townsville floods. The claims process was unfamiliar, but with a broker by her side every step of the way advocating in her best interest, she secured an additional $10,000 on top of what was originally suggested by the insurer. Her broker also got repairs underway, appointing a project manager to lead this process.

“You could talk to them about what you’re going through; they understand and they are emotionally involved,” she says. “Without their support it would have been a totally different journey.”

Getting an insurance broker in your corner

Often, the true value insurance brokers bring to the table in the event of a crisis is misconstrued. The responsibilities of a broker go far beyond arranging a suitable insurance solution for your business. In the event of the unexpected, they take a level of stress off your hands – negotiating with insurers and representing your best interests throughout.

This is not only a professional obligation for brokers, but also a legal one. Your broker works with your business to pinpoint risks and, based on this, provides tailored solutions.

Brokers bring expertise that is backed by both highly specific qualifications and accreditations and prior industry experience. By leveraging this knowledge, they can go above and beyond to protect your company against possible threats – so you can continue doing what you do best, even in the face of crisis.

For more information, or if this article has brought up any queries, please don’t hesitate to get in touch us on 03 9809 1532.

DISCLAIMER

Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.  The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.