Business insurance brokers play an important role in selling insurance policies that can protect businesses from many different types of risk. These can include property insurance, customer complaint insurance, asset insurance, and many more policies that businesses often require.

When selecting an insurance broker, it may make sense to simply go for those who offer the lowest premiums. However, this can lead to you being exposed to more risks that are not covered by the insurance policy. It's therefore important to know what you need to look at when selecting business insurance brokers.

Are they direct writers or independent agents?

Insurance brokers either work directly for a particular insurance company (direct writers) or as independent agents. Direct writers typically represent the products of a particular company as well as the options they have to offer. The brokers are basically employees of the insurance company and their role is to promote those insurance policies. The benefits of working with direct writers are that they tend to be more knowledgeable of insurance policies that a specific company has to offer. They can also enable you to obtain nice discounts if you select the policies they are selling.

On the other hand, independent agents may sell policies from multiple companies and they get a commission from each sale. The benefit of independent agents is that they can offer multiple options for you to compare.

Consider the type of insurance you need

Take a look at the needs of your business and determine (in order of priority) the type of policy you need to obtain through business insurance brokers. If asset insurance is at the top of your list, identify brokers who specialise in your policy of interest to get more options to select from. If you're more concerned about consumer protection, select your brokers accordingly.

Expertise and experience

Make sure your broker is adequately qualified to deal with insurance policies. This means they should be licensed in their profession and bonded against any potential malpractice damages they might cause.

Dealing with qualified, licensed, and bonded business insurance brokers protects your business against potential damages and lawsuits.

Attention to your business needs

Simply put, the broker should have the needs of your business at the top of their priority list. They should be willing to offer insurance policies that cover your risks and are affordable for your business in the short and long term.

Consider if the broker is listening to your concerns, returning your calls on time, and accommodating your business interests.