Most businesses find out whether their insurance works the day they make a claim, but by then it’s too late to change anything. The outcome is usually settled months earlier, when the business was described to the insurer and the policy was put together. That’s the part of the process a good independent insurance broker handles for you – like us.
What does an insurance broker do?
An insurance broker is an FCA-regulated adviser who acts for you rather than for an insurer. Where an insurer can only sell its own policies, a broker works out what cover you need, and searches the market for the best and most appropriate solution.
You can check any broker on the FCA Register. Most brokers are paid commission by the insurer or a fee (or a combination of both).
For a business, that means one person who understands every policy you have, is on your side when a claim is made, and who will support you throughout the life of the policy.
When should I use an insurance broker?
An insurer’s job is to provide insurance. A broker’s job is to represent your interests and help you buy the right insurance, at the right price, with support when you need it most.
For commercial insurances such as freight forwarding, logistics, marine cargo, or liability programmes, a broker’s expertise can often be worth far more than the cost of their commission or fee.
We will also:
- Co-ordinate and manage your insurances
- Provide expert advice
- Access to specialist markets
- Negotiate with insurers on your behalf
- Make contact with you regularly, ensuring you are always adequately covered
- Prepare a register of Insurances
- Administer all policy documentation
- Loss control and advice when you need to make a claim
- Risk management and health and safety advice to help reduce risk and consequently future premiums
How do brokers secure better terms from insurers?
Better terms come from a better presentation of your business. Under the Insurance Act 2015, a business buying cover has a duty to make a fair presentation of its risk. This means carrying out a reasonable search of the information available to it and telling the insurer.
Our account executives meet with clients directly and visit premises so that we can present each business to underwriters properly, including the safety measures and investment that a proposal form tends to leave out. An underwriter with a better understanding of your business and the risk is more likely to price favourably.
According to BIBA, brokers arrange 77% of all UK general insurance and 94% of commercial insurance. So for business cover, a broker is the norm rather than the exception. At Rigby Financial, we have access to major UK insurers and Lloyds markets, which widens the options for unusual risks.
A good broker also negotiates the policy terms, because excesses, exclusions and limits often matter far more at claim time than a small saving on the premium. Better terms mean cover that fits the business, which isn’t always the cheapest quote.
Which business insurance policies benefit most from a broker?
The policies that gain most from a broker are the ones where wording varies between insurers, or where a small error in the details can negatively impact a claim.
Employers’ and public liability – The legal requirement is simple, but whether contractors or volunteers are covered can catch businesses out. Our guide to who is on your employers’ liability policy explains it all.
Professional indemnity – Wording differs between insurers, and, usually, the difference only shows when a claim is made, so you should compare professional indemnity insurance clause by clause.
Fleet and commercial vehicles – Restrictions on who can drive which vehicle, and for what purpose, are easy to get wrong across a large fleet, which is one of the benefits of fleet insurance arranged through a broker.
Commercial combined and property – Sums insured need to reflect current rebuild and replacement costs, because underinsurance can trigger the average clause and cut a payout in proportion, even on a commercial combined policy.
Cyber – Cover and exclusions vary widely between cyber insurance policies, so it helps to have someone read them side by side before you choose.
Marine – Transportation of goods, whether that be by land, sea or air, requires careful consideration.
Management liability – Essential protection for directors and senior leaders; getting this right can make or break a business at claim time.
Why businesses choose Rigby Financial
Rigby Financial is a family firm started in 1980. We have a team of more than 18 across our offices in St Helens and Southport. We’re members of BIBA, and our clients deal directly with the person making decisions on their account. We carry out site visits, offer a free review of your existing insurance, give risk management and health and safety advice, and handle claims in-house. Our independent financial advice team can also look after a business’s pensions, investments and group protection alongside its insurance.
Joanna Jenner, Director of Barton’s Pickles, said, “We use Rigby Financial Insurance as they provide outstanding customer communication and deliver the right insurance cover in a timely and efficient manner”. Arcoframe has trusted us with its van fleet and buildings for nearly 20 years, and you can read more on our testimonials page.
Insurance broker – final thoughts
Most businesses only learn that their risk was described badly when they make a claim, which is the one moment it can no longer be put right. A broker’s real job is making sure that conversation with the insurer happened properly long before then.
If you would like to know how your current cover would hold up, book a free review of your insurance or call us on 01744 886077.
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