Getting the best out of your insurance broker

GETTING THE BEST FROM YOUR INSURANCE BROKER 

Penny Jepson, Head of Business at blocks of flats insurance broker Deacon advises managing agents, landlords and lettings agents on how to get the best from their insurance broker in the current economic climate. She talks about how to get the best deal, the importance of understanding what you are actually covered for and how claims history, risk management and robust health & safety procedures can help boost their risk profile and reduce premium costs. 

In the current economic climate, it is more important than ever to have the best possible insurance cover at the right price, and it is your broker’s job to achieve this.  

Price isn’t everything 

Price should not be the only consideration when buying insurance. Just because you are getting a cheap deal or discount for less cover does not mean you are saving money. It is one thing paying less and keeping the bank manager happy, but if you have a major fire, you want your claim settled promptly and your business back to normal as soon as possible, with minimum financial outlay. Look at the whole package to ensure ‘value for money’. 

Most brokers use the same insurers, but this does not mean they provide the same value for money, or the same cover and terms. Depending on their size, buying power and relationship with the insurer, some brokers offer enhanced products, and may even have the Delegated Authority to act on behalf of the insurer in the event of a claim – speeding up the claims process and reducing pay out times by up to 50%.  

Establishing a long term relationship with your broker will help get you the best deal. A proactive broker will always  source the most cost effective premiums, and should complete a full review of the market on your behalf every couple of years. 

Choose a broker with a large panel of insurers - between four and seven - as it means they are not tied to one particular supplier. A good broker will almost always have a gut feeling as to which carrier will be the best for you.  

Information is king 

Tell your broker everything about the way you run your property portfolio. If you have a poor claims history, tell them your plan to reduce the number of accidents/thefts, etc. If you have a great claims record, tell them why it is so good i.e. planned maintenance, regular inspections, security guards on unoccupied premises.

A specialist broker will quickly develop an in-depth understanding of your business and liabilities, and be able to provide advice on mitigating risk, as well as legislative and compliance issues. Your attitude to risk management is important to insurers so always provide your broker with as much information as possible.  

Risk awareness and robust health & safety procedures can really help boost your risk profile and reduce premium costs. 

Finally, keep your broker advised of any changes to your business strategy. In today’s tough market, this may include new activity to generate additional revenue or improve efficiencies. It is vital that you advise your broker at an early stage to discuss the insurance implications.  

Credit: http://www.deacon.co.uk/media_centre/getting_the_best_from_your_insurance_broker.aspx