An insurance broker is a person who specialises in risk management and insurance. Brokers represent clients and give them advice about insurances and risk management. Sometimes insurance brokers act as agents of insurance companies. However, when this happens, the broker and insurer need to fully explain this to you.
Risk Management
An insurance broker will help you identify risks in your business in order to assist you decide what to cover. They also help you identify how you will manage the risks that might harm your company.
Insurance Industry
Insurance brokers can also specialise in one specific kind of industry or insurance. Some also specialise in other different types. An insurance broker basically gives you a technical advice. The advices will help you in the process of a claim.
A broker is knowledgeable about the terms and conditions, exclusions and benefits, as well as costs of a wide range of rivals. They can also assist you find the most suitable insurance policy for you. Furthermore, they assist their clients by choosing the most affordable insurance so that you don’t face any budget constraints.
Why choose a broker?
An insurance broker has access to a wide range of available insurances in the market. Since they specialise in assisting people with insurance policies, they also have access to policies that are hidden from most customers.
Some insurance policies can be difficult to choose and understand, but with the help from brokers, they will explain and help you understand. They will help you with budget, and the cover level, and the terms and conditions so that you are fully protected.
Brokers negotiate premiums on your behalf. They have negotiation skills and they deal with lots of insurance companies every day.
Where brokers offer you with personal advice, they must make sure their agreement with the Corporations Act help you with:
- Good and right advice
- They represent your best interest
- Broker must let you know if their advice is based on inaccurate information
- Prioritise your interests
- Organise and give you a Statement of Advise that papers their advice related to the policy
A broker is required to be a member of an authorised peripheral dispute resolution scheme. Check with your broker if they have all the required documents and licenses to operate. Be careful as some insurance brokers are out there to scam people and they don’t have the necessary documentations.
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