Public liability insurance is one of the most common business insurance policies purchased, and as such, there are scores of providers on the market.
It can be difficult to know which to go for and so some businesses opt to use a public liability insurance broker who will scour the market for the best deals on behalf of the business.
Businesses can compare prices themselves and go directly to a provider whose employees can help with their in-depth knowledge. The British Insurers Brokers’ Association also has a directory of brokers.
Independent insurance experts NimbleFins have also teamed up with QuoteZone to provide up to the 5 best quotes from their panel for a business’s circumstances. Their panel includes public liability insurance brokers who are on hand to answer questions, and businesses just need to fill in a short form to get started.
Business insurance near me
Business insurance comes in many shapes and sizes, with packages tailored to the risks a business faces. This could be from needing business interruption cover, cyber insurance, public liability insurance, or even goods in transit insurance and taxi insurance. Businesses almost always need to take on employers’ liability insurance, but the rest is down to their individual needs. It can feel like a minefield, but experts are always on hand to help sell the right package.
Business insurance broker vs agent
Business insurance brokers and agents both sell insurance but work in different ways, and both have their pros and cons. For example, an insurance broker works independently of insurance companies and so can offer a business a wide range of options. But agents work for a specific insurance company. So while they should have in-depth knowledge of the provider, they may be motivated to sell a specific package rather than what is necessarily right for the business.
An insurance agent is working with a captive market – the business has come directly to them. This means a lot of the selling of the company has already been done and they are now often focused on the commission they will earn if they sell a package. Agents will earn a basic salary, but this will be topped up with commission and/or a bonus.
There may also be sales targets on certain products at the time a business enquires, so they are often at risk of being given the hard sell on something that may not be quite right for them.
However, that is not to say that insurance agents (that is, employees who work for one insurer) should be ruled out. They know the ins and outs of the packages on offer with their provider and often offer good customer service.
Not only that, but a customer is less likely to discover hidden fees, with administration costs factored into the quote. This is not always the case with an insurance broker, who can add to a bill with registration fees, cancellation fees, or the cost to make a change to a policy.
If a business chooses to go with the insurance company the agent works for, setting up a policy is usually quicker than using a broker as they have access to all the systems and contacts needed.
But it is time-consuming to go to many insurance providers to get quotes.
When it comes to an insurance broker, they are working for the business and so will have the customer in mind when looking for the best deals. They will assess a wide range of products to find the best suited to the business. This can save a business a significant amount of time comparing products. And brokers have access to some insurers that won’t work directly with customers. But, it’s worth understanding that brokers don’t necessarily work with all providers on the market.
The other good point about a good insurance broker is that they have a comprehensive knowledge of the industry. This means they can be a lifeline when dealing with a complex scenario as they will be able to offer ways to get around limitations where a business may have hit a brick wall.
A broker will receive a commission directly from the insurance provider, but this is usually scalable depending on the value of the policy. This could mean they are more motivated to promote a more expensive policy or get incentives to sell certain products.
In short here are the pros and cons of both an insurance agent and an insurance broker.
Insurance broker pros:
- Access to a wider range of insurers and policies.
- Good with complex situations.
- Should have expert knowledge and advice.
- Works for you to try and find the best product and price.
Insurance broker cons:
- Can invoice for administration fees.
- Doesn’t necessarily work with all insurance companies.
- May not know fine details of products.
Insurance agent pros:
- In-depth knowledge of the insurance provider they work for.
- Potentially better customer service.
- Lower or no administration fees.
- Finalising a deal is often more efficient.
Insurance agent cons:
- Time-consuming to go to each company directly.
- Only offer information on one insurer.
- Maybe incentivised to sell certain products.
- May not be able to help with complicated scenarios.