4 Reasons to Use an Insurance Broker When Setting Up a Business

Every new business needs some form of business insurance. While you may choose to organise coverage for yourself, you should also consider using a business insurance broker, even at an early start-up stage. What can a broker do for your new business?

1. Get the right insurance coverage

While you may have some ideas about the types of policies you need, you may not have comprehensive business insurance knowledge. You may not know about all the different types of business coverage you can take out, to protect your business.

You may wish to take out a general package direct from an insurance company, because this seems like the easiest option. While this probably covers the basics, you may not get the protection your business needs.

An experienced business insurance broker understands the commercial insurance market on an expert level. They know how to insure business start-ups. They also understand how to insure different business sectors and specialist trades.

You don't have to settle for a general business package and will get customised coverage that meets your current insurance needs. Your broker will give you a clear explanation of the policies you take out so you understand exactly why you need them and what they do. Plus, as your business grows, your broker will be there to help you adapt your coverage in the future.

This advice also ensures that you meet any statutory requirements. For example, your broker can help you work out if you are legally required to take out certain policies such as Workers Compensation or Liability insurance.

2. Save time

If you organise your own business insurance and want to get the best coverage, you will need to set aside some time. You’ll need to research insurance companies and policy types, as well as source and compare quotes.

This research can eat into time better spent working on your start-up. If you take too long, you run the risk of not having coverage in place when you need it.



A business insurance broker works much faster. They already have all the market knowledge and connections you need. You don't need to spend any time on this part of the process and can just focus on setting up your business.

3. Save money

Even if you compare insurance quotes, you might not get the most cost-effective package. You might not include an insurer in your shortlist that has competitive rates and coverage. Or, if you take out a general business insurance package, you may pay for coverage your business doesn't actually need.

Insurance brokers can help you find the best coverage at the lowest rates. They know all the players in the market and often have access to special deals or policies that you can't access directly. 

Plus, a broker can give you advice on other ways to reduce your insurance costs. For example, if you're willing to increase the excess on a policy, then your premium costs may decrease.

4. Get expert claims assistance

If you organise your own business insurance, you’ll need to manage any claims you make and will liaise with your insurance company directly.

Unfortunately, this process isn't always straightforward. You might not know exactly how to cost a claim, or make mistakes lodging a claim. You may also have problems getting your insurer to approve your claim for the full amount.

Using an insurance broker ensures they always represent you in a claim. They will manage the claims process and liaise with the insurance companies involved, letting you get on with running your business.

If you want insurance advice on the protection your start-up needs, contact Westralian Insurance today.