Agencies, Blog - February 14, 2023
Insurance Brokers: Who Are They And Why Does Your Agency Need One?
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Insurance is one of the few purchases you hope you never have to actually use. And with the nature of insurance, in most cases you won’t find out if the policy works until the worst happens and you need to make a claim.

There are many reasons your insurance policy may be unsuitable, from lack of coverage to inaccurate financial information. And if you don’t discover this until you need to claim, it could be too late – leading to rejected insurance claims that may catastrophically impact your agency.

So, how do you avoid paying for an inappropriate policy? In this blog, we’ll detail how insurance brokers can help you get the right cover for your business.


Why might your insurance be inappropriate?

The world of insurance can be confusing. With so many available policies and an abundance of complicated language, it’s not always clear what insurance is best for your agency.

When we perform due diligence reviews on agencies, we often find they’re paying for policies that aren’t right for them. And this is especially true of the agencies dealing directly with the insurance provider, where the insurer may not ask the right questions or spend time with the agency to fully understand what they do.

Here are a few reasons why your insurance may be unsuitable:

Financial information

If an agency declares inaccurate, incomplete, or outdated financial information, the insurer won’t pay out. The policy pays the claims that are expected to be covered. Anything as simple as an understated turnover or imprecise calculations could affect that.

Product type

Without proper research or a broker’s assistance, an agency might take out the wrong policy. For instance, they may have a basic insurance product that isn’t suitable for their services and misses key coverage – often the case for Professional Indemnity insurance.

Contract requirements

Inadequate insurance policies might not meet the requirements of the contracts they sign with their clients. For example, a client contract might request a £5 million limit, but the insurance only provides £2 million. Therefore, the company is technically in breach of contract.

Business description

Insurance providers determine the scope of coverage based on the business description you give – which is an accurate picture of your agency’s activities and services. If the business description is outdated or incomplete, the insurers might only insure against some activities.

Policy conditions

Certain policies can require the agency to comply with specific conditions. For instance, your building insurance might only cover you if you meet a minimum-security condition, like using a specific type of lock. If you don’t – or can’t – satisfy the requirements, you may invalidate your policy.

Policy exclusions

Insurers don’t cover every eventuality. It’s possible there are certain exclusions in place. Agencies should check that they have the correct coverage for their industry, activities, and needs.


What is an insurance broker?

To avoid taking out inappropriate or insufficient policies, you might choose to work with a commercial insurance broker – a professional who helps your agency find and purchase suitable policies from a range of providers. They work as an intermediary between insurance companies and agencies to find the best coverage for their clients at the most competitive prices.

Typically, commercial insurance brokers specialise in a specific type of insurance or sector – as we do at RiskBox. Brokers are knowledgeable about the different available products that are relevant to your agency, and can provide guidance based on your particular industry and risk profile. Plus, they can help you understand terms and conditions, negotiate on your behalf, help you file claims, and handle any issues that may arise during the policy period.

Ultimately, commercial insurance brokers help businesses protect themselves and their assets from financial losses.


Why use an insurance broker?

Brokers can offer valuable expertise, time-saving services, cost-effective solutions, risk management guidance, and claims assistance to help you operate more efficiently and effectively.


Commercial insurance brokers have extensive knowledge about the products available to your agency. And they can help you identify the right level of coverage needed to protect yourself and your assets.

Save time

Researching, finding, and comparing insurance policies can be a time-consuming process. Fortunately, a commercial insurance broker can do the legwork for your agency, providing you with a range of options that meet your needs.

Cost effective

Brokers have established relationships with insurance companies in a range of industries. They can negotiate your behalf to secure appropriate coverage at the most competitive prices, so you don’t need to worry.

Risk management

A commercial insurance broker can help digital agencies assess their risk profile and identify potential vulnerabilities to recommend the right level of coverage and mitigate those risks.

Claims assistance

If the worst were to happen and your agency needs to file a claim, a broker can guide you through the process and advocate on your behalf to ensure a fair outcome.


How RiskBox can help

Unsure if you have the right insurance cover? We offer a free, no-commitment review of your current policy, whether it’s with another broker or direct with the insurer.

It usually involves a short meeting to discuss your business, services, and future plans so we can fully understand your needs. We’ll then review your current policies and point out any areas that need further consideration. Plus, we’ll identify insurance types that are missing, and that you might need. After that, we’ll provide a written report for you to use as you see fit.


If you’re interested in getting an expert’s opinion, contact our insurance specialists today. We’re here to help!


Photo by Luke Southern on Unsplash

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