Yet again there has been a push by some of the larger online insurance companies to draw-in new customers from the smaller end of the business community – including the charity sectors. While this can appear attractive where there is a real need to spend less on insurance, the longer term consequences of buying without seeking the advice of a broker could easily wipe out any initial cost savings.
According to Datamonitor, 65% of smaller businesses are buying their insurances online – accounting for up to £14bn in insurance premiums. In a recent survey by Boston Consulting Group, at least half of this number is totally unaware who their insurer is – following their online purchase.
|From Insurance Times|
According to Graeme Trubgill of the British Insurance Brokers Association (BIBA), “..customers who are buying online are often just trying to get some cheap basic cover but might be missing the fact they don’t have ……… something that is fundamental to the protection of their business and staff.”
What BIBA wants to do is to “…. raise the profile of this subject and for customers to appreciate that using a broker will give them greater insight into what the must-have areas of [insurance] cover are and what sums insured will be correct for them.”
The truth is that most only think about insurance at renewal or when filing a claim. At renewal the main questions are around price; at the point of claim the only questions are about the levels and types of cover! At the point of claim, there is always the feeling that “I wish I’d not gone for the cheapest…….”
So best advice has to be to go to an intermediary – a broker – who can advise you on the insurances which you need and who can negotiate an acceptable price for you. What you will get from them is an ‘advised sale’ – for which the insurance broker is accountable and so if you haven’t bought what you thought you had, it is their fault – so they have a vested interest in getting your insurances right!
Broker Network’s sales and marketing director Richard Pitt says, “..the only protection a customer is going to get from the impact of underinsurance or not getting their cover right is to complete an annual review with a professional advisor.”
This applies the voluntary sector as much as to the commercial sector. Archaeologists take note!!
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