Should You Use a Local Broker?

Once upon a time if you wanted to use an insurance broker you would use one from your local area, but these days things are different.

The internet has brought about major changes in so many areas of our lives, and this includes the ways that we interact with business professionals such as insurance brokers.

Whilst the rise of online services means that we can access services from anywhere around the country (or even the world), is this a good idea for you and your business?

So the question is, are you better off using a local insurance broker or looking elsewhere?

Benefits of using a local

One of the best things about using a local insurance broker is that you can speak with them face to face.

Not only is this good in terms of building a business relationship, but it also means that your broker can visit your place of business and see for themselves what potential risks need to be insured against.

Whilst this may not be a big deal for many small business types, it can become more important for larger businesses and those with a complex range of potential risks than need to be assessed.

Disadvantages of going local

The major downside to using a local insurance broker is that you’re restricting yourself to a small pool of expertise.

For example you may run a fairly unique business type in one area, but all of the brokers specialising in your industry are located interstate.

A local broker may still be able to help you, but by limiting yourself to the local area you are missing out on the specialist advice available elsewhere.

Benefits of going elsewhere

Technology means that we can now deal with a business insurance broker from anywhere in the country.

We can find a broker via an online search, we can research them and learn more via their website, and we can communicate with them via email, phone, online chat and even video conferencing.

This means that you can find the most suitable insurance broker for your business without being limited to a certain geographic area, and you can deal with them at any time that suits you.

If you are dealing with an insurance brokerage that only deals with clients via phone and email, you may also find that they can offer lower premiums due to their lower operating costs.

The downside of dealing with a remote broker is that you cannot deal with them face to face.

However, in most cases you still have the peace of mind knowing that you’re dealing with a qualified and licensed broker, and any decent broker will provide you with their mobile phone so that you can contact them whenever you need to.

With advances in online technology, there is no reason why insuring your business with an insurance broker who deals via phone and email should be any different to using one who deals face to face.