How to select an appropriate general insurance broker
Prospective insureds seek appropriate insurance cover priced competitively. Finding a broker who takes the time to understand your business, and the unique risks it faces, is essential to achieve this goal.
For your broker to act on your behalf effectively, they must ascertain what risk is to be transferred by insurance and alternative means (i.e contractually or by qualifications, procedurally etc). On understanding the prospective insureds own appetite for risk, the broker may then collect relevant underwriting information and then articulate the risk comprehensively to “motivated” insurers.
Key points to consider when selecting a broker:
Your broker should be able to offer service tailored to your industry, your specific business and your goals and expectations. Their ability to understand and articulate your unique needs and challenges is the foundation for an effective insurance and risk management program.
Trust and transparency are key to a successful client/broker relationship. In short, the preferred insurer should be the insurer proposing the best package for the client – not the insurer who remunerates the broker at a higher rate. Of utmost importance is the broker’s commitment to represent your interests (and not the interests of insurers or underwriting agencies).
A broker should have sufficient expertise in risk management, placement of policies and claims management. Only then may it be appropriately placed to procure the most appropriate policy (coverage) and premium outcome for their client. Experience is often the best measure of capability in this regard. Before appointing a broker, consider the relevance of their experience acting for others in your industry, of a similar business size, maturity and who possess a similar risk appetite to you.
A broker with a solid reputation and strong relationships will be well known amongst your industry competitors. It will otherwise be acknowledged by its own peers and or insurers in the “insurance market”. If a broker is working with businesses similar to your own, it is a positive sign that they are experienced to understand your risk and more importantly it shows that they have relationships with insurers in the market so it is able to place your policies. Seeking a referral from your own network of associates is a good place to start. Alternatively, you may also ask the broker for a referral from one of their current clients. It is also important for your broker to work closely with your other professional advisors, in particular your lawyer or accountant.
To discuss your insurance needs with one of Bellrock’s experienced brokers, please contact us via the form below.