Advantages of Using an Insurance Broker VS an Insurance Company Directly

When looking to purchase insurance, it can be confusing as to what company is the best to buy your insurance from. If that isn’t bad enough, you also have to decide whether or not to buy your insurance from an insurance broker or an insurance company. There may be differing opinions when it comes to this because people have had different experiences.

Below are 3 major advantages of using an insurance broker vs. using an insurance company:

• Insurance Brokers have the ability to offer you an entire host of insurance products for you to choose from. An agent does business with one company, so they are only able to offer you what their company has available. Insurance products can vary considerably from one insurance company to the next. With a broker, having the ability to choose from many different products allows you to choose a policy that is adequate enough for your particular profession. For example if you are a software developer, then you can get insurance that fits the needs of a software developer, or a telecommunications company etc.
• An insurance broker is licensed to provide advice. Insurance companies (and their agents) can only provide general advice on the specific product(s) in which they offer. A broker has to have extensive training (minimum industry requirements apply) and experience to be able to provide advice and broking services, so you can have that peace of mind that they really know what they’re talking about in terms of the insurance policy that will adequately cover you.
• Insurance Brokers also analyse the type of business that you’re in. It is their responsibility to look at that business and determine what coverage is adequate and endeavour to source a policy in the market that provides the most appropriate cover available. This does not happen when dealing direct with an insurer or an insurance agent. With an agent, you are given options and it is up to you to determine what coverage is adequate for your business. They do not have a responsibility to ensure that you’re not going to lose your home if you get sued for making a mistake in your profession.

It is easy to see what the advantages are regarding the insurance broker vs. insurance agent debate. The insurance broker really does have your best interest at heart. That is why insurance brokers look after over 80% of business owner’s insurance needs in Australia. They have great reputations for making sure that their clients have what they need.

So if you’re searching for insurance for your business, look for it from an insurance broker. You get advice specific to your needs, better service, better treatment, and you have more policy coverage choices.