How does an insurance broker work?
Here’s a guide to insurance brokers, what to look for when choosing an insurance broker, and how they could support your business.
What do insurance brokers do?
As an insurance broker, HIAIS have access to a panel of quality insurers, who have been screened to ensure they offer appropriate coverage and good value for the construction industry. We’re proud to say that in the years we’ve been operating, we’ve cemented solid relationships with our insurers, and aren’t afraid to negotiate on your behalf to ensure you’re getting cover that is suited to the construction industry.
Why use an insurance broker?
Insurance goes well beyond simply paying a premium – often, the true value of it is only apparent after something happens. Below are some of the benefits of using an insurance broker.
- Expertise and Knowledge: Insurance brokers are professionals who specialise in insurance and have in-depth knowledge of various insurance products and policies available in the market. They can help you navigate through the complexities of insurance and provide insurance advice relevant to your industry. Insurance brokers stay updated with the latest industry trends and can recommend suitable coverage options.
- Range of Options: Insurance brokers work with multiple insurance companies and have access to a wide range of insurance products. Instead of reaching out to individual insurers, insurance brokers can provide you with options from different providers, allowing you to compare coverage, terms, and prices. This can save you time and effort in researching and obtaining quotes from multiple insurers.
- Tailored Recommendations: Insurance brokers take the time to understand your insurance requirements and assess the risks commonly found in your industry. They can help identify the most suitable policies and coverage limits for your industry. Insurance brokers can arrange insurance that provides adequate protection and minimises any potential gaps in coverage.
- Advocacy and Claims Assistance: In the event of a claim, insurance brokers act as your advocate and provide support throughout the claims process. They have experience dealing with insurers and can assist in preparing and submitting the necessary documentation, which may result in a smooth and efficient claims settlement. Insurance brokers can help you with the claims administration process and work on your behalf to help maximise your claim benefits.
- Ongoing Support and Risk Management: Insurance brokers provide ongoing support even after you've purchased a policy. They can help you with policy renewals, updates, and adjustments to your coverage. Additionally, insurance brokers can offer risk management advice, helping you understand and mitigate potential risks to your property, assets, or business.
- Access to premium funding: As a builder or tradie, cash flow may be a concern which can make paying your insurance premium very difficult. If you require a payment plan to help with funding your premiums, HIA Insurance Services can also help arrange access to this. There will be additional fees and charges associated with premium funding which will be explained to you.
How to choose an insurance broker?
There are many ways to pick an insurance broker, you must choose an insurance broker with whom you feel comfortable working, and who understands your industry. You could consider asking the following questions when looking for an insurance broker.
- What kind of experience does the insurance broker hold within the industry? They must have relevant experience working with businesses or individuals within your chosen industry.
- What kind of relationship does the insurance broker have with insurers and providers? Do they have a positive relationship with insurers, and affiliations, such as industry associations?
- What does the insurance broker specialise in? It is always important to choose an insurance broker who specialises in your chosen industry as they will likely have a better understanding of the risks and market conditions your business may encounter.
- What are the insurance broker's claim and service capabilities? You should consider the size of the team, response times, and the ability to support your business in the event of a claim.
- What are the insurance broker's qualifications? Do they have the relevant qualifications?
- Are the insurance brokers aligned with your business? Is the broker transparent and how will they help to support your business?
Who pays for the services of an insurance broker?
An insurance broker is obligated to advise you of the fees for the services they provide to you. They may charge a fee for their services or may earn a commission. HIA Insurance Services provides our clients with a Financial Services Guide (FSG) which explains how an insurance broker is paid for the services provided.
What types of insurance do insurance brokers arrange?
There are many different insurance products insurance brokers can arrange. They will often specialise in a particular category of insurance. For example, HIA Insurance Services brokers specialise in understanding the risks of residential construction builders. It is important when you are looking to choose an insurance broker, they offer products that are relevant to your business and understand your industry.
Why choose HIA Insurance Services?
We understand the residential construction industry. HIA Insurance Services was formed by the Housing Industry Association (HIA) and Aon joining forces to work together. We’ve combined expertise in the residential construction industry with deep knowledge of risk and insurance to develop cover that suits your industry’s needs. We’ve assessed the needs of builders, and designed coverage using building blocks that the industry told us are important. For example, we offer Construction Legal Expenses cover which can provide businesses with cover for legal expenses when they launch legal action against a customer or supplier, or have a legal action brought against them. It can provide cover for costs associated with obtaining legal advice and other expenses associated with resolving a contractual dispute.