Written by A business insurance broker is a financial advisor who specialises in providing advice about insurance products. They’re experts in their chosen field and often specialise in one particular type of insurance, such as public liability or commercial vehicle insurance.
Brokers act on behalf of their clients, offering advice about the type and level of insurance they’d recommend. They can save a customer plenty of research, time and effort by presenting tailored insurance packages for consideration.
In Australia, insurance brokers and agents are licensed by The Australian Securities and Investments Commission. To become an insurance broker, you first have to complete a Certificate III in Insurance Broking and a Diploma to gain your Australian Financial Services Licence.
What do business insurance brokers do?
These are some of the services offered by insurance brokers:
Providing advice
Business insurance brokers offer impartial advice about different insurance products available in Australia. They usually have a broad knowledge of multiple insurance products, and can assist a client to choose an insurance policy that is a good fit for their needs.
Offering packages
In addition, some business insurance brokers have their own insurance packages, products, special offers or enhanced insurance coverage which isn’t usually available to the public direct. Insurance companies provide brokers with these special deals in the hope of attracting new business.
Conduct risk assessments
The broker will meet with their client and work out what type of insurance the client is after. They may even assist the small business owner to carry out a risk assessment of their business, which may highlight where the business’ vulnerabilities lie.
Help clients through the purchase process
Once a client has decided what sort of insurance they need, the broker will go away and research what type of insurance package would best suit them. They will compare different policies and then make a recommendation to their client.
What are the alternatives to buying business insurance through a broker?
The clearest alternative to buying insurance through a broker is to compare offers yourself online. Savvy can provide you with a range of insurance quotes for comparison from some of Australia’s leading insurers. We offer an instant insurance quote service, which involves answering just a few questions about your business and the type of insurance you’re after. From there, you’ll receive a variety of offers online for you to compare side-by-side.
Getting quotes through Savvy is a convenient and simple way of comparing insurance policies offered by a wide variety of insurers. There’s no need to book an appointment or wonder if you’re getting the best deal. You can consider quotes from a variety of insurers just minutes from now and get your business the coverage it needs as soon as today.
Crucially, by comparing offers yourself, you can have more power to decide which is the best policy for your needs, rather than have it decided for you.
There are also a few other alternatives to using an insurance broker, including:
- Do all the background research yourself, find out which companies offer the type of insurance you’re after and apply directly to several insurance companies to get a quote
- Approach one company you may be familiar with or already have a policy with and ask for a quote
- Ask family or friends which insurance company they use, and get recommendations from people you know
Pros & cons of using a business insurance broker
Frequently asked questions about business insurance brokers
Business insurance brokers can assist with various types of coverage, including general liability insurance, property insurance, professional liability insurance, workers' compensation, and more.
An insurance agent works for just one insurer selling their employer’s products. As part of their job, they may liaise with many different insurance brokers to make them aware of what their company can offer. On the other hand, an insurance broker works for the customer to advise them which policy or type of insurance would best suit their needs.
Yes – insurance brokers are obliged to disclose any commission they may receive or fees they charge in a document called a Statement of Advice. This will tell you what advice they have given you and will detail any fees for service or reveal what commission they will earn by selling you the insurance on offer.
Yes – business insurance brokers can help you find cost-effective insurance options by comparing different policies and identifying discounts or package deals that suit your specific needs.
Yes – business insurance brokers often provide claims assistance and support, helping you navigate the claims process and ensuring you receive fair compensation.
Compare business insurance online
Disclaimer:
Savvy is partnered with BizCover Pty Ltd (ABN 68 127 707 975, AFSL 501769) to provide readers with a variety of business insurance policies to compare. Savvy earns a commission from BizCover each time a customer buys a business insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via BizCover.
Savvy does not compare all business insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.
For any further information on the variety of insurers compared by BizCover or how their business works, you can read their Financial Services Guide.
