Should I Use An Insurance Broker?

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It’s a question that all business owners will ask themselves at some point in time:

Should I be using an insurance broker?

Whilst some Australians still choose to use insurance brokers for their home and car insurance, most now go directly to the insurance companies via their call centres and websites.

Business insurance is a different story, with brokers still being the preferred option. This is slowing changing however.

So what should you do? Should you use a broker, or should you just take care of it yourself and deal with the insurance company directly?

These are the types of things that will run through a typical business owner’s mind when choosing one or the other:

Not using a broker

  • I can save money by cutting out the middle man
  • I’m good enough to run a business, so I can easily handle my own insurance
  • I don’t want someone else to earn commissions from my business

Using a broker:

  • I’d rather let a broker do it and know that it’s been done properly
  • I don’t have the time or expertise to take care of it myself
  • I want a professional there to look after me whenever I need it

Personally I don’t agree with any of the first three bullet points, but from discussions with business owners who don’t use brokers I know this is how they feel!

So let’s break it down and take a look at some of the different elements of taking out business insurance, and how they are affecting depending on how you choose to take out cover.