Tips for selecting an insurance broker
There are some basic questions you need answered when selecting a broker, especially when looking for business insurance. You will benefit most by developing a close business relationship where the broker understands your future plans, the associated risks and how you like to do business.
Some of the answers are easily obtained by you. Others can only be answered directly by prospective brokers.
- Proximity or specialist service? Do you need a broker who operates in your area? If so, find out which businesses are based nearby by conducting a location search of this site. If you require a specialised business insurance service, search by broker specialty.
- What do you need? Do you need small business or domestic cover, personal service, special risk management services or technical advice? Would you prefer to work with a small or large insurance firm?
- Request expressions of interest: Ask the insurance brokers you've selected to give you an expression of interest or a proposal. This should detail:
- Their qualifications and registration with official bodies or associations (such as NIBA)
- Who would service the account
- Their experience with your type of business
- Their range of services
- Size of their "typical" client
- How they bill for work
- Referees.
- Making a decision: From the expression of interest you'll get a feel for who may be right for you. As a business you might then ask them to make a presentation. At the presentation you should look for:
- Business compatibility
- Level of commitment
- How they propose to solve your insurance problems
- The competitive advantages of their firm over any others you may have selected.
- Review: Once you've made a decision, include a review period in the relationship with your broker. This allows both parties to discuss issues of concern and see if the relationship is working.