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Helping businesses make better insurance decisions

Insurance brokers play a vital role in providing comprehensive insurance guidance, helping businesses to make well-informed decisions about their policies.

18 January, 2024
Article, Insurance, Partners, New Zealand, Risk Management
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Insurance brokers play a vital role in providing comprehensive insurance guidance, helping businesses to make well-informed decisions about their policies.

Vero’s recently released SME Insurance Index report highlights the value and importance of broker advice for SME clients, particularly in uncertain economic times.

The report found that around 70% of small and medium businesses (SMEs) are not considering fundamental elements when renewing their insurance, such as changes in staff numbers, increasing costs of replacement and changes in equipment and assets.

According to the report, brokers play a vital role in guiding SMEs towards insurance solutions that strike a balance between affordability and comprehensive coverage, thereby enabling businesses to navigate economic uncertainties with confidence.

The benefits of a broker

Long-time Gallagher broker David Wing said brokers help clients understand the risks they face, ensure that the coverage aligns with their specific needs and keep them informed about changing factors that may affect their coverage.

“A key question we ask a client is about their business needs. A conversation with a broker means the client has the opportunity to thoroughly discuss their risks and requirements and ask questions about the insurance products they’re considering,” he commented.

“If you’re not given the opportunity to discuss your situation, then you may not know what’s missing. You might think you’ve selected the best cover for your requirements but the nuances of the policy – and therefore your risks – could mean it is not the right cover for you.”

David said it is vital to know exactly what is covered by a policy. “Being underinsured (where a claims pay-out will not cover the value of the loss) could put you in a difficult position if the worst were to happen.”

He also said a broker is invaluable in helping a client to understand the finer details of a policy.

“Interpreting exactly what a policy covers can get overwhelming for many people. We get used to the insurance jargon and legal language used in a standard policy wording. A broker’s ability to relay – in plain language – exactly what is being detailed is hugely important for clients.”

“Another really important benefit of a broker is helping people when they have a claim, which after all is why you have insurance. With the help of our claims experts, we work to resolve a claim quickly and with the best outcome for a client. For most large or complex claims, we also negotiate directly with insurers for the client’s benefit,” said David.

“A broker really does deliver peace of mind.”

Expert advice from Gallagher

Our insurance brokers help you make smarter choices about your insurance, so you can face your future with confidence. For more information talk to your Gallagher broker.


The views expressed in this content are those of the author, who is also responsible for any errors and omissions. Family Business Association provides this article for your information only. The content of the article should not be taken as advice. If you wish to explore this topic, please consult an advisor who you consider to have the expertise to provide specific advice in relation to your family business.