July 30, 2021

Take Caution: Purchasing Insurance Without An Insurance Broker Is Your Liability

A statement, all too often heard unfortunately, when an insurance claim is declined or not fully paid out:

“But I thought it was covered under my insurance policy?”

When an insurance policy was purchased direct from an insurer, you become solely responsible to ensure the type of cover is appropriate and sums insured are adequate to secure your assets in a claim.

Keep away from exorbitant insurance errors that might backfire during claim time. Insurance brokers give expert advice and plausible solutions outlined to match with your risk profile.

A Broker’s Value

Here are some interesting stats!

According to Deloitte Access Economics, “40% of clients are underinsured or not insured at all before engaging an insurance broker.”

In a 2019 SME Insurance Index survey conducted by Vero on insurance claim outcomes, it has been stated that clients who use an insurance broker are more than twice as likely to be fully covered in a claim in contrast with those who do not.

Recurrent stories can be heard where individuals and businesses were under the impression that they were covered by their insurance policy, only to read the fine print in a claim and find out they are not. Usually, people who experience losses way over and above their level of coverage realise they are significantly underinsured.

If you organized your insurance through a direct insurer, you are unfortunately, responsible for deciphering whether the policy matches your circumstances and whether your level of cover is adequate. You must also be the one to deal with the financial blowback in a claim if you don’t get it right.

 

The benefits of using an insurance broker

  1. Expert advice and insurance solutions that are suitable for you

Brokers frequently work with clients for a number of years earning a deep understanding of their risks and intimate details of their business.

Insurance brokers perform a needs analysis for each client to achieve a complete picture of their risk exposures and the assets in need of protection. A broker then provides specialist counsel on the most appropriate insurance coverage. This personalised approach guarantees clients have enough insurance coverage designed to respond to their particular exposures, providing the best possible protection in a claim.

  1. Brokers are cost effective

According to Deloitte, 33% of clients were previously paying more on their insurance policy before they engaged in a broker.

Insurance brokers have access to a range of insurers, both local and international including insurance products that are not available to the general public. The increased choice can lead to greater competition and lower premium rates with a great many insurers competing for the client’s business.

  1. During claim time, Brokers are your advocate

Your insurance investment comes to life during claim time.  In the event of a claim, insurance brokers act on your behalf lifting insurance market relationships to arrange and bring about the best possible claim settlement.

  1. Save time & resources

A Deloitte study indicates that, by engaging an insurance broker to arrange insurance, each client saves around 11 hours on average! This equates to more than $230 million in time savings for business clients and on average, it is estimated that brokers save their clients 2.5 hours the least during the claims process.  Research has also found that 41% of SME clients feel their claims process would have been ‘much harder’ without the support of a broker.

Insurance brokers provide you with added security to help ensure your policy comes through for you in a claim.

For professional insurance advice, connect with an ARMA Insurance Broker today.