Few business owners deal directly with insurers. Most prefer to go through an insurance broker for impartial insurance advice.
Using an insurance broker
Insurance brokers can advise you on whether a single insurance policy or a combination of single insurance policies would be more appropriate. Be sure to give all relevant information to the insurer, otherwise an insurance policy may not be valid.
Insurance brokers, advisers and other insurance intermediaries are regulated by the Financial Conduct Authority (FCA) and you should make sure that your adviser has FCA authorisation. Read the FCA guide to SME insurance brokers.
If you buy products or services from insurance intermediaries, you have the right to ask the intermediary how much commission they get for selling the product or service to you.
Dealing directly with an insurer
If you do choose to deal directly with an insurer, it's worthwhile checking that they are a member of the Association of British Insurers (ABI).
When buying insurance, it is useful to:
- get quotes from several different insurers or ask your broker to do so
- compare the levels of cover
- talk to your broker about whether you need an insurance policy tailored to your specific needs
What to consider when buying insurance
Other factors to take into account when choosing an insurance policy are:
- what it will cover
- whether there is a no claims bonus
- whether the insurer offers 24-hour legal advice and emergency helplines
- the level of excess - the amount of each claim that you will have to pay yourself
- the extent of excess to be retained by your business