insurance brokers, can they help???

naturegirl_2

I need specilized insurance cover for my business (willow crafts) and I have contacted sooooooo many my head is spinning. No one so far can offer the right policy and one company recommended a broker. Do I have to pay for their services! and how do I find the right one.

Astaroth

Most brokers do not charge you directly for placing the business but they will be receiving a proportion of the premiums as commission. In some cases however brokers will charge fees for mid term amendments on top of what the insurer charges for these. Obviously for commercial insurance changes are less often but dont expect commercial insurance to be handled in the same way as personal lines is... with many companies, even for basic insurance you will get the quotes through a few days after requesting them rather than instantaneously - the market is changing for SMEs but not at a massive pace - there is yet to be a direct line type revolution in this market

I'm_With_Stupid

I think there is a fee, but it should be included in the quote they give you. So if it's cheaper than what you've been quoted, then it's not a problem. But maybe someone can correct me. If the broker gets you a quote with an insurance company, what's to stop you saying thankyou, I'll call you back, and just ringing that company yourself for the same quote without the arrangement fees?

mattymoo

I'm_With_Stupid wrote:

I think there is a fee, but it should be included in the quote they give you. So if it's cheaper than what you've been quoted, then it's not a problem. But maybe someone can correct me. If the broker gets you a quote with an insurance company, what's to stop you saying thankyou, I'll call you back, and just ringing that company yourself for the same quote without the arrangement fees?

Most insurers work through distribution channels. There are:-
1) Direct sales via telephone / internet.
2) Sales via insurance brokers.
3) Sales via affinity groups / banks etc. Household insurance through a mortgage lender is a classic example.

The OP has tried option 1 without success. Direct commercial insurance is only really set up for simple businesses such as offices and retail shops.

Option 3 does not apply although it may be worth seeing if there is a trade body for your craft and seeing if they have negotiated a special deal with anyone.

Option 2 is the best way to go. The deal will only be available by the insurer. Most brokers will take your details and distribute it to the insurers with whom they hold an agency. They then wait for the quotes - 2-3 days and put the options to you. There is nothing to stop you approaching a couple of brokers.

Commercial insurance is vastly more complex than household insurance and a good broker is worth their weight in gold.
As an example, the broker should point out any conditions applicable to the policy such as security, smoking, stillage (storing goods off the ground), electrical inspections etc.
They should also assist at the time of any claim.

naturegirl_2

thanks, I've spent alot of time on the internet and phone today speaking to a variety of people from agents to the National Farmer Union. So far no one has offered me anything. I've been in touch with the association which is closely linked to what I do and even they cant insure me for part of the work I do (which involves school grounds) which appears to be a big no no! Im trying a craft insurance and hope to hear from them tomorrow

mattymoo

Re the school grounds issue. Is the sticking point abuse cover? A lot of insurers have withdrawn or restricted this type of cover because of the claims potential.

If one person reports abuse the police then set about interviewing other pupils / past pupils and what started out as one claim becomes dozens.

Some insurers do offer it as a extra but you pay a lot for it and have to show you have a CVA policy in place (CVA = children and vulnerable adults).

ArchieB_2

Broker as mentioned previously. BIBA's website should have a list of local brokers. You need to ascertain what cover you legally require vs the cover that would be desirable vs the cover that is available.

I don't know what you actually do so I can't offer any more info I'm afraid.

naturegirl_2

I've managed to get insurance from a Craft specialist. They had no problem with the school issure as its classed as private grounds. I cant however make structures which are accessible to the general public or commissioned by ie the council as I would be classed as an employer and the company dont cover that! The problem with the schools is if a child injures itself on the structure and sues. Funny thing is I have been police checked but not one school has ever asked me for ID or proof of clearance!!!