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!!
Call me to discuss your
insurance needs on 0208 2550617 / 07768 865983
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