Top Tips When Choosing a Business Insurance Broker

Posted on: 31 January 2020

Most business people have a difficult time finding an insurance broker that understand their business needs. The extract below discusses a few tips on how to find a business insurance broker.


Ask friends and other business people to refer you to reputable agents in your area. Alternatively, you could examine the reputation of insurance agents by seeking testimonials from their current clients or conducting internet research. Avoid agents accused of unprofessional conduct and those that do not follow up on claims.


Does the agent understand your industry? Some agents specialise in transport, manufacturing or construction businesses. The primary advantage of working with a specialised agent is that they understand the vulnerability of your business to various risks. For instance, a contractor may need their general liability policy to cover subcontractors on the site. Specialised agents will customise the policy to suit your needs. For instance, they might help you combine general liability, professional indemnity and workers compensation insurance into a single policy that has lower premiums. The agent will also monitor your insurance cover to ensure it adapts to changing business environment. For example, if you hire new employees, they should know how to adjust the employee liability cover. 

Captive versus Independent Insurance Brokers

A captive insurance broker is one that works with a specific insurer. They are a suitable choice when you are confident that you want to work with a particular insurance company. On the other hand, independent insurance brokers work with many insurance companies. They are ideal when you need to compare and contrast the various insurance covers. When choosing an independent insurance broker, inquire how many insurance companies the broker has under their portfolio. The more, the better.


The agent should observe a high degree of professionalism. Below are a few things to look out for:

  1. Certification. The broker must be licenced to operate in your state. Further, they should be affiliated with professional associations such as the National Insurance Brokers Association.
  2. Availability. Accidents can happen at odd hours. Therefore, work with an agent who has a 24/7 hotline.
  3. Claims. Ask the broker how they handle claims. For example, how long should you wait? What documents are needed? The broker should be ready to follow up with your insurer until you receive compensation.
  4. Services. Some agents will conduct a comprehensive risk assessment to determine what risks require insurance coverage. Others might offer online services to busy clients.

An insurance broker will help insure your business against various risks. When choosing a broker, examine their reputation, speciality and professionalism.