Why an insurance broker is your biggest business ally

There’s a lot to think about when running your own business and, whilst it may seem that responsibility falls directly on your shoulders, there is one invaluable ally who can help. Your insurance broker.

The right insurance broker is like the right business partner. They will be there to support you when things go wrong, but they will also give ready advice to prevent issues from arising in the first place.

Your business is their business and often the right broker will have more to offer than you initially think.

is one such broker operating within the ��Ƶ market to support businesses across all sectors.

We spoke to company directors, Pauline Rushton ACII and Dan Ogden CII, about how having a broker can improve the overall running of your business.

A broker understands the nitty-gritty

Insurance policies are founded in the law which means you, the business, has a duty to disclose any and all relevant information upon inception.

If you fail to advise your insurer of any material fact then it could lead to cancellation of your policies or even prosecution, which is the last thing your business needs.

Ignorance is no defence in the eyes of the law, so how do you know what constitutes a material fact and relevant information?

Simple. You have an insurance broker on your side who is professionally trained to understand everything you need to disclose. They will act as an intermediary between you and your insurance underwriters which will give you peace of mind that your business has been accurately represented.

Pauline, from Bluestone Insurance Services, elaborated. “At Bluestone, we understand how various industries work so we can speak from experience and quickly get into an effective discussion with our clients. This enables us to obtain the important facts Insurers need to know.

"It’s not just about good risk management though,” Pauline asserts, “with the best will in the world claims arise and it’s our job to make sure each customer understands the levels of cover and terms applicable to their policies.

"We pride ourselves on knowing what each Insurer requires and ensure our clients are aware of the matters they need comply with, so everything runs smoothly in the event of a claim.

“Our job is to assist clients with understanding their policies and to interpret and highlight things they may easily miss.

"Complying with policy terms and conditions is vital so being able to highlight these to clients is an essential part of our role.

"As appropriate we also provide advice on identifying, assessing, mitigating and managing risk. We give them clear advice which can ultimately protect their business and lead to the most competitive premium cost.”

A broker is as flexible as your business plans

An insurance broker's job involves building trusted relationships and strong partnerships. Doing this right means nothing can get missed.

"We try to get to know a client's business,” Pauline said, “which includes how they operate and what they do. If they say things are changing or are likely to change in the future then we can set diary notes and contact them again at the appropriate time.

"We’re also able to consider how best to structure their insurances to take into account any future alterations in their business platform.”

In a time when money is a key focus though, can it be cost effective to use an insurance broker?

There is a common misconception that using an insurance broker has a greater impact on your bottom line than if you were to arrange your insurances direct. Often, however, this is not the case.

Insurance companies know that if your risk is presented to them via a broker they can be confident the facts have been gathered correctly and are an accurate representation of your business activities. This can be hugely beneficial.

“Insurer’s know nothing has been missed so they are more likely to give us a lower quote than they would, say, to an individual approaching them direct,” Pauline confirms. “The competitive rates we’re able to attract will largely offset any perceived additional costs so fees can start at just £30 to set up an annual policy.”

A broker helps prepare a business for the future

Often, when a business obtains their own insurance direct they will be satisfied it meets their needs at that time, but it may not provide adequate coverage going forwards.

“The people who buy insurance cover for themselves directly without having anyone to talk to about it,” says Dan, “will go down what we call the ‘non-advised’ route meaning they will only be given what they have asked for.

"Customers will not be informed about new and emerging trends or areas of concern. Our job as brokers is to ensure you’re adequately protected at all times so we will establish firstly what you want but also those things you didn’t know you needed.”

“Our advice is driven by claims patterns,” added Pauline, “for example, years ago we had a lot of break-ins but now people don’t bother gaining access through your front door.

"The way money is taken from businesses is through your computer and it’s important we educate our customers about shifts in these trends."

“We don’t know of any other agencies who are educating businesses in the way we are,” confirmed Dan.

Bluestone Insurance directors Pauline Rushton and Dan Ogden

“The process we go through with our clients enables us to equip them with the very best knowledge we can so they are fully aware of all the risks they face and can make decisions based on current facts.

"Data and information security is a huge concern at present,” he continued. “Generally businesses understand that if they have stock to protect they need to have locks on their doors, but they can be unaware of the potential damage from electronic theft. Similarly we are able to look at other emerging trends, say terrorism.

"In the past terrorism policies could only be triggered by actual material damage, however we know that recent attacks have caused substantial loss of trade due to road closures. The businesses contained within cordons may not have suffered any physical damage, but their income could have been adversely affected.

"Over the last couple of years some insurers have added a ‘denial of access’ clause to their policies, meaning that if an event is defined as ‘terrorism’, you are eligible to make a claim if your trade suffered, even if there was no actual damage.

"We educate our clients,” Dan finished, “to know these covers are out there because unless you specifically ask for them, often they won’t be included.”

“There are always a lot of changes to policies," said Pauline, “they get upgraded and altered to reflect what’s happening in the world and if you’re in isolation in a business you may not be aware or even have the time to think about those particular aspects even though they could still affect you.

"When we go out to renew with a client it’s not just about updating our information, it’s about letting our customers know about emerging risks and changes that will directly affect them. Then we can help them to find the right solution.”

A broker's advice can make your premiums more competitive

Insurance companies like to understand the whole picture when it comes to underwriting your business, including any positive measures you’ve taken to minimise risks.

“A call centre, for example,” clarified Pauline, “can be prone to slips, trips and falls due to the numbers of workers and the shift nature of their business. If they have a proactive stance on risk management - like logging all the times there is a near miss - then the insurance company will view that client as being more proactive which in turn means they’re more inclined to give a premium discount.

"We, as the broker, are able to effectively convey this to an insurer and demonstrate that our client operates a well-run business.”

Smaller brokers place the right person with the right insurer

All insurance companies have different ‘target’ markets, i.e. businesses with which they are looking to work, which means that rates across the market differ widely for the same risk.

An insurance broker will know which insurer favours which type of business which means they are able to place you in the best place, with the best cover at the best price.

"There are schemes out there that we have access to that might be specific to a particular trade,” advised Pauline, “which is where we, as a smaller broker, have the advantage over our larger competitors.

"Often, the bigger brokers will use only a select few insurers to achieve higher turnover with those companies, whereas the smaller broker, like us, can spread the buying power amongst lots of different insurers.

"This means we really can place our clients with the right insurer for their needs.”

Brokers are always there for you, especially if things go wrong

Sadly, things can go wrong and this is when the services of an insurance broker really come into their own.

“When it comes to a claim, rather than you sitting on a helpline and dialing several numbers hoping for the right one, we do that for you," stated Pauline.

"We offer support and let the business know of anything they can do straight away as well as what information will be required by the insurance company to expedite the whole process. And we will also manage expectations,” she added.

“If a client puts in a claim and we are clear it won’t be covered then we can advise them of this straight away. Not because we don’t want them to claim, but because we want to manage their expectations as we know there may not be a satisfactory resolution.”

An example could be a claim for damage caused by bad workmanship - an incorrectly built wall that collapses.

“Ultimately,” Dan added, “we’re there to act in a company's best interests when handling claims so we can ensure they get the best possible outcome and experience.”

is a chartered broker and part of the British Insurance Broking Association.

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