How to Avoid a Bad Business Insurance Broker

At Professional Insurance Business Brokers we act for our clients and are entirely separate business from insurance companies except in special cases when we may act as agent for an insurer to write a particular product. You can contact us any time if you need clarification on how we work.

If you want to avoid hiring a bad insurance broker, you should ensure the broker is properly licensed and are subject to strict regulatory guidelines in order to act as an authorised intermediary between their clients and insurance companies. During their term of appointment they assist their clients to select the right insurance program or policies for their specific insurance needs and provide ongoing support and advice when making a claim.

Here are some steps to take when searching for  a competent Business Insurance Broker that can lead you to find/procure the  correct coverage as well as the proper insurance company.

Have a conversation with the Business Insurance Broker

Ask the insurance broker questions regarding their expertise, experience and fees. Discuss specific scenarios to understand how they can best represent you as they first need to know about your business before they can help you. Remember whoever you choose will be acting for you, not the insurance company.

Seek out Testimonials from others

Testimonials are a way to see if the potential insurance broker has a good reputation for his or her knowledge and client satisfaction. One way to find out more about a Business Insurance Broker is to ask people who know the broker or have dealt with them in the past. Their opinions can help you assess if the intended insurance broker will be suited to looking after your interests.

Get the insurance broker’s Financial Services Guide

You must get the insurance broker’s Financial Services Guide (FSG) when you decide to deal with him. The FSG sets out the salient details of the insurance broker’s business profile and how it affects their relationship with you. It explains who they act for, what services they provide, the products they can advise on and arrange for you, their sources of remuneration and complaints handling mechanisms.

Ask for a Product Disclosure Statement

You are entitled to receive a Product Disclosure Statement (PDS) prior to or at the time you elect to proceed with an insurance policy. The PDS is issued by the insurance company that covers your risk and summarises the important features and benefits of the policy. This helps to avoid future disagreements between you and the insurance company about what should have been included in your coverage. It is usually found near the front of the full policy wording, which can be quite complicated for anyone not familiar with legal jargon.

Deal with an Insurance Broker that listens

Your business insurance broker should be able to understand your questions and answer them accordingly. If he fobs off your questions or does not address them appropriately, chances are he is not looking after your best interests, which he is obliged to do.

Ask other Business Owners

Ask around. If you own a business, maybe your own customers or suppliers could point you to a good insurance broker whom they know. Listen to their recommendations and experiences with insurance brokers or the insurance companies they have used. Their views can help you to choose wisely and make a difference in getting the proper support if you lodge a claim or if a claim is made against you.

A referral that is unbiased and well backed up either by third parties or acquaintances will play a major if not the deciding factor when choosing the right small business insurance broker.

Don’t forget that the team at Professional Insurance Brokers are happy to help you with your small business insurance quotes, if you are in Australia, just call 1300 profin and our staff will help you get a better deal for your business insurance.