Insurance Brokers
Instead of contacting a large number of private insurance companies, you may find it easier, faster and cheaper to insure your business through an insurance broker. Insurance brokers are organisations which act as mediating agencies, matching business and personal customers with suitable insurance policies.
The main function of insurance brokers is to provide your business with independent and accurate advice about a range of private insurance companies, and to arrange all aspects of purchasing the insurance. They will normally have access to special deals with insurance providers and should thus be able to find the most appropriate insurer to cater for the needs of your business. Some brokers may only deal with a limited number of insurers; it may be valuable to approach other brokers and compare their offers.
Insurance brokers are often advantageous for businesses, especially those that require a tailored package with several types of business insurance; a broker can save you time and it often proves less expensive than negotiating separate deals with insurers yourself. Insurance brokers do however charge a fee, and many earn commission from certain insurance providers. If this is the case, it is likely that the broker will seek to sell a policy which suits your business but also earns them money, and it might be useful to contact an independent broker for unbiased information. A good broker should inform you which aspects of different insurance policies suit your business and which aspects are less relevant, and ultimately give you time and space to make the final decision yourself.
Some insurance brokers specialise in dealing with firms who operate in particular industries. This can be beneficial for companies who wish to exploit the broker's expertise and insurance contacts. It is not normally difficult to find a broker; some brokers will contact you directly, others can be found on the internet or in the telephone directory, and you can also ask colleagues or friends for recommendations. When you find a broker, you may wish to ask whether they are prepared to re-evaluate your insurance policies when necessary. This is likely to be the case for large businesses which operate in high-risk environments, although the insurance needs of all businesses can change over time.
Any insurer or broker from whom you purchase an insurance policy should be regulated by the UK Financial Services Authority (FSA). The FSA monitors organisations who provide insurance or financial advice to customers, to constantly ensure that they are providing an accurate and honest service. An insurance broker who is not registered might provide you with biased or false advice, or even an invalid insurance contract. They may also be more expensive than other brokers, since they do not need to abide by the FSA's policy of fair competition (essentially, fair service and fair service pricing). Taking out an insurance policy with an unregistered lender could even put your financial and business data at risk and is therefore not recommended under any circumstances.
