Looking for business insurance? You've got two options: get your cover direct from an insurer or buy it through a broker.
A broker is the middleman between you and your insurer. They’re on your side, helping you find cover that fits your business, and making sense of everything along the way.
Done right, they ease the headache of getting insurance and the stress of dealing with claims.
But here’s the thing – not all brokers work the same way. Some make things simple and supportive. Others...not so much.
So, how do you choose one that actually makes your life easier? Here are four key questions to ask.
4 key questions to help you choose an insurance broker
Here's what to consider:
1. Are they regulated by the Financial Conduct Authority (FCA)?
Using a broker who’s not FCA-regulated is a dicey move. You have no guarantee they’re on your side.
The Financial Conduct Authority (FCA) is responsible for making sure businesses behave properly and treat their customers fairly. Because of that, most brokers will make it clear they’re FCA-regulated. So, if you can’t see anything on their website, proceed with caution.
You can also check the FCA’s register yourself to see which brokers are authorised to offer ‘advised sales’. This means they’re qualified to use their expertise to advise you when you’re buying your insurance.
As well as being FCA-regulated, most will also belong to a trade body like the British Brokers Association (BIBA). Checking if this is the case helps to rubber stamp that feeling of trust between you and your broker.
Because brokers have to adhere to a strict set of standards and practices as part of that trade body’s rules, you know they’re doing things the right way.
2. What's their specialism?
Insurance isn’t one-size-fits all.
Different businesses face different risks. Because they do different things, an architect’s needs will look very different from an accountant’s, for example.
Likewise, different brokers specialise in different products and different occupations. The more specialised your broker, the better. Because the more clued-up your broker is, the more clued-up you’ll be.
That’s why it helps to choose a broker who understands your kind of work. So they can:
- Spot risks you might not have thought about
- Recommend the right cover
- Help you avoid any gaps in your cover that could cause problems later on.
When it comes to insurance, trust matters. You want to know you’re being matched with the right cover and not simply sold a product that sounds impressive but doesn’t hold up when there’s a claim.
3. How do they handle claims?
Insurance is there for when things go wrong. So, you want to be sure your broker will be there for you when the chips are down.
It’s worth asking them: what happens if I need to make a claim?
The best brokers don’t just point you towards a claim form and wish you luck. They guide you through it, answer your questions, and go toe-to-toe with the insurer on your behalf when needed.
Because brokers understand the claims process inside out, they can anticipate any delays and help smooth out problems ahead of time.
They’ll keep you updated on your claim’s progress and let you know if anything else is needed. The best ones will even lend a sympathetic ear if you’re worried about anything or need some extra reassurance.
Ideally, you’ll have the same person dealing with your claim from start to finish. Because let’s be honest – making a claim can be stressful enough already without having to explain everything a hundred times over.
4. Can they answer your questions?
You shouldn’t need a background in insurance to understand your policy.
A good broker explains things clearly. No jargon. No vague answers. Just straightforward guidance to help you make the right decision.
Try asking them a few basic questions:
- What cover do I actually need?
- Why do I need it?
- What would happen if something went wrong?
If their answers seem confusing or unclear, that’s a red flag.
No one knows everything, of course, but brokers are there to represent your interests, no-one else’s. They know you need expert guidance and advice if you're to get the insurance your business needs.
Businesses insurance is a complex area and businesses (and their needs) change all the time. If you take on a new activity, land a big contract, or start working abroad, you’ll need to review your insurance policy to check it still fits.
A good broker take you through everything step by step and ask you the right questions. They’ll explain your cover simply, in plain English, so you can be confident about what you need (and what you don’t).
The really good ones will even check your policy documents are present and correct after they’ve sent them to you. In other words, they’ll do everything to make things easier for you, not harder.
What else should you know?
Here’s something many people don’t realise.
Since there are more brokers than insurers, lots of brokers have an 'agency' (a formal agreement to do business) with the same insurer. And insurers often deal with brokers on a first-come-first-served basis.
As an example, let's say you ask broker A for a quote, and they approach ABC Insurance Ltd for terms. If you then ask broker B for a quote, and they also approach ABC Insurance Ltd, you're out of luck. You won't get two quotes.
Once ABC Insurance Ltd has quoted through broker A, you'll have to go through them to get your cover. Although that's not a big deal in itself, it does mean you have to be sure you don't prefer broker B.
If you're not sure, and you really want to change, it's possible to do so by writing a 'letter of appointment' to the insurer. This simply states you authorise broker B to act on your behalf. Although it's a bit of a faff, a decent broker will put the letter together and send it for you.
That’s another reason why choosing the right broker from the start matters. It saves you time, avoids confusion, and helps you get the cover you need without going round in circles.
Value, not cheap
Just to clarify, price comparison websites aren't the same as brokers.
These companies (called 'aggregators') simply compile quotes from any given section of the market and leave it up to you to decide. A broker approaches specific insurers for specific quotes to fit your business. That makes a big difference if there's a claim.
We can't stress enough the importance of choosing a broker you're comfortable with. If you have any questions about your cover, or you think you might have a claim, your broker's your number one ally. If you're not comfortable asking them for help, it'll be your business that's affected.
The bottom line
A good insurance broker has your back from day one. They save you time and stress by:
- Offering you clear advice
- Helping you find the right cover
- Supporting you when it matters.
Because when your insurance is sorted out properly, you can stop worrying about it. That’s what we’re here for – to take care of the insurance side of things, so you can get on with running your business.
How we help as a broker
There are lots of benefits to using a broker like us. We’re FCA-regulated and a fully-fledged BIBA member. So you can trust everything we do is held to high standards – from the way we explain things, to how we look after you.
We work with small businesses every day, so we know what matters – and what doesn’t. That means less guesswork for you, and more confidence that everything’s covered.
When it comes to claims, our approach is simple. If something happens, you won’t deal with it alone. We’ll help you through the process and keep things moving, so you can get back to looking after your business as quickly as possible.
Find out more about our role as a broker on our website. Or give our team a call on 0345 222 5391.
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