Why Use an Insurance Broker

With so many insurance companies in the marketplace, it’s hard to know which one provides the best value for money and right amount of cover for you. It’s easy to be overwhelmed and take shortcuts without understanding the fine print and whether the policy is in fact suited to your specific needs.

An insurance broker saves you time, worry and money through their knowledge of the benefits, exclusions and costs of competing policies on the market. Their understanding of the insurance market means they can also negotiate competitive premiums on your behalf. Additionally, they can arrange and place your cover and provide advice on how to make the most of your insurance budget.

What does an insurance broker do?

Here are some real examples* that demonstrate the role of an insurance broker when clients are dealing with disputes.

*Names have been changed

Case Study 1: Stolen Goods

Company A has management liability insurance.

A regular truck driver, employed by company A, made an arrangement for the warehouse to be opened in the early hours of the morning due to his busy schedule. Then over a two-week period this employee stole stock to the value of $320,000. He was arrested, and stock recovery was sought but failed as proceeds had been gambled away. Company A was not covered under a burglary policy as there was no forced entry, however they were able to claim under a management liability policy arranged by an insurance broker. Without the management liability insurance, this situation would have cost company A half of its annual profits.

Case Study 2: Statutory Cover

Company B does not have management liability insurance.

Company B is in manufacturing, and it was alleged that the carbon emissions from its factory were incredibly high over a period of three days. This was a direct result of a mechanical breakdown in the factory that took days to repair. The Director and the company itself were charged with six offences under the Environment Protection Act.

Following a one day hearing, the Director and Company B were found liable and were fined $30,000 in addition to overall defence costs of $15,000, which were incurred over the duration of the investigation and prosecution. Company B could have claimed these expenses under management liability insurance, had they enlisted an insurance broker to put the right covers in place.

Could you benefit from an insurance broker? Please contact us to learn more about how we can help you.