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10 advantages of using a commercial insurance broker

Safeguarding your assets, your people and your customers | 6 minute read

The world of insurance is complex, constantly evolving and often requires in-depth knowledge to effectively navigate. As a growing business, you’ll want to be sure that your insurance needs are being met and that you’re getting the right coverage. A broker simplifies that process.

Key takeaways

1. Personalised, specialist advice. Insurance brokers provide tailored recommendations based on a wide panel of insurers, using their expertise to assess risk, explain cover clearly, and ensure clients are fully protected.
2. End-to-end support. From selecting the right insurer and negotiating affordable pricing to ongoing policy management and claims assistance, brokers offer continuous support that saves clients time and stress.
3. Confidence and clarity. With an unbiased approach and a commitment to plain English, brokers empower clients to make informed decisions and gain peace of mind knowing their insurance needs are professionally handled.


Why does using an insurance broker matter?

Insurance brokers provide essential guidance and support when looking for the right policy. Their in-depth market knowledge can really make a difference, helping you make more informed decisions about your business. 


80%

It’s estimated that 80% of UK SMEs are underinsured, and many would be unable to withstand the financial impact of a significant uninsured loss.

Source: Insurance Business Magazine


40%

40% of UK businesses cited a lack of understanding of insurance, indicating a prevalent knowledge gap.

Source: Insurance Business Magazine

What does an insurance broker do?

An insurance broker acts as a trusted intermediary between businesses and insurance providers, helping companies find the most suitable commercial insurance policies. They assess risks, compare quotes, negotiate terms, and manage the claims process, ensuring businesses receive specialist support and comprehensive coverage at the best possible value. 

Why use an insurance broker?

  1. Communication preferences: A broker can adapt to your preferred method of communication, whether that’s in person, by email, or over the phone. They ensure contact is timely, reaching out well before renewal dates to review your options and discuss any changes to your business needs. This proactive approach means your cover should remain suitable and up to date. Beyond renewals, brokers are also available whenever you need advice or reassurance, giving your business direct access to specialist guidance at any time. .

  2. Plain English: Insurance terminology may be challenging to understand, potentially making the process of obtaining a policy longer and more complex without assistance. An insurance broker will take the time to explain everything in plain English, breaking down complex terms and conditions into clear, practical guidance. This ensures you fully understand your cover, your obligations, and any exclusions, helping you make confident, informed decisions for your business. 

  3. Expertise: They use their knowledge and experience to identify and explain any areas of cover that the client may need to consider or highlight additional risks. For example, brokers may recommend cyber insurance to protect against data breaches or ransomware attacks, which are often overlooked but increasingly vital. Their insight ensures businesses don’t miss gaps in protection and have the right policies in place to safeguard against both common and emerging risks. 

  4. Risk management advice: A key role for a broker is risk management, helping clients identify and mitigate potential risks. Following that, any insurances the broker recommends will help ensure a client is kept fully protected. At NFP, this can also include providing you with practical health and safety advice to support safer working practices for your business. Implementing robust health and safety measures such as staff training, maintaining up-to-date incident logs, and demonstrating an ongoing commitment to risk management can strengthen your position with insurers. By taking a comprehensive and proactive approach to health and safety, your business may be better placed to secure more favourable terms, but any reduction in premiums will depend on the insurer’s individual assessment and criteria. 

  5. Unbiased approach: Insurance brokers work with a panel of insurers without favouring any particular provider, carefully assessing a wide range of policies and costs. This ensures that any recommendations are based solely on the client’s specific needs, priorities, and risk profile. By taking an objective view, brokers can highlight the most suitable options, helping businesses secure the right cover at the best value while avoiding unnecessary extras or gaps in protection. 

  6. Selecting the right insurer: Brokers have insight into an insurer’s financial strength and service levels, enabling you to make informed decisions about where to place your policy. At NFP, our team have access to many insurers on the market, as well as bespoke schemes, allowing them to match your business with the most suitable cover tailored to your unique needs. 

  7. Tailored coverage: Brokers don’t just compare policies, they ensure coverage is carefully matched to the unique needs of your business. By understanding your operations, risks, and future plans, a broker can identify the most relevant policy options, helping you avoid unnecessary gaps or overlaps in protection and ensuring your business is fully safeguarded. 

  8. Policy management: Once a policy is in place, a broker continues to offer support by reviewing your coverage at key points, such as before renewal, when you advise of changes to your business, or after a claim. This helps to ensure coverage remains suitable as your business develops. We handle queries, make adjustments when necessary, and liaise with insurers on your behalf, saving valuable time and reducing administrative burden for your team. 

  9. Claims support: Navigating an insurance claim can be complex and stressful. A broker acts as your advocate, guiding you through the process, providing advice, and helping gather the necessary information. Their expertise increases the likelihood of a smooth, fair settlement and ensures you don’t face unnecessary delays or complications. 

  10. Peace of mind: Working with an experienced insurance broker gives business owners confidence that their risks are properly assessed and their coverage is suitable. Ongoing support and guidance throughout the life of the policy, including help with claims, ensures your business is protected and that you can focus on running it without worry. 

Every business is unique, and so are its risks. Our role as brokers is to take the time to understand your organisation and tailor cover that fits, ensuring you’re not only compliant but confidently protected against the unexpected.

Kayleigh Houghton
Head of business improvement - Commercial insurance

Want to see how we can help?

The landscape of business risk management is getting more complex every day, and staying one step ahead of industry changes is a full-time job. NFP are here to help you navigate theses complexities, giving you peace of mind that your business is fully protected so you can focus on your business goals.


General disclaimer

This insights article is not intended to address any specific situation or to provide legal, regulatory, financial, or other advice. While care has been taken in the production of this article, NFP does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the article or any part of it and can accept no liability for any loss incurred in any way by any person who may rely on it. Any recipient shall be responsible for the use to which it puts this article. This article has been compiled using information available to us up to its date of publication.


NFP contributors

Kayleigh Houghton
Head of business improvement - Commercial insurance

Michael Hamidy
Operations Director – Advanced Insurance Consultants, an NFP company 



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